Because Condominiums Were a Novel Form of Property,they Had to Be

question 240

True/False

Because condominiums were a novel form of property,they had to be approved by statute because the common law could not recognize a new form of ownership.

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Definitions:

Drawing Account

An account used to record withdrawals made by an owner from the business for personal use.

Owner's Capital Account

An equity account that represents the owner's invested capital plus any retained earnings or minus any withdrawals.

First Closing Entry

The first journal entry in the closing process that transfers revenue and the expense account balances to the owner’s capital account as either a net income or a net loss.

Owner's Equity

The residual interest in the assets of a business after all liabilities are deducted, essentially the owner's share of the company's net assets.