Primarily for ________, Most Courts or State Legislatures Have Determined

question 8

Multiple Choice

Primarily for ________, most courts or state legislatures have determined that a minor should not have the right to disaffirm certain types of contracts including life insurance, health insurance, counseling, education loans and marriage contracts.

• A) competency reasons
• B) public policy reasons
• C) governmental reasons
• D) banking reasons
• E) legal reasons

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Definitions:

Nominal Account

An account related to income, expenses, losses, or gains—these accounts are closed out to the capital account at the end of an accounting period.

Income Summary

An account to which all income statement account balances are transferred at the end of an accounting period to show the period's profit or loss.

Debit Balance

A situation in accounting where the sum of debits in an account exceeds the sum of credits, often indicating the extent of assets or expenses.

Closing Entries

To transition balances from temporary to permanent accounts, journal entries are executed at the end of the accounting period.