During the Twentieth Century It Became Easier to Enter into a Contract

question 52

True/False

During the twentieth century it became easier to enter into a contract as well as to get out of one.

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Definitions:

Temporary Accounts

Accounts that are closed at the end of each accounting period. These include revenue, expense, and dividend accounts.

Permanent Accounts

Accounts that carry their ending balances over to the next accounting period and are not closed out.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Accruals

Accounting adjustments for revenues that have been earned or expenses that have been incurred but not yet recorded through daily entries.