Gina,a Minor,enters into a Contract to Buy a Tractor from Herb,an

question 27

Multiple Choice

Gina,a minor,enters into a contract to buy a tractor from Herb,an adult. If the deal is set aside,restoring Gina and Herb to their original positions prior to a contract is

• A)ratification.
• B)emancipation.
• C)disaffirmance.
• D)restitution.

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones, preparing for the next period.

Pre-closing Trial Balance

A financial report listing all the account balances in the general ledger before adjusting entries are made for the preparation of financial statements.

Closing Entries

The accounting process of transferring temporary account balances to permanent accounts at the end of an accounting period.

Journalizing

The process of recording transactions in a journal before they are posted to ledger accounts.