Asset and Liability Accounts Are Closed to the Income Summary

question 28

True/False

Asset and liability accounts are closed to the Income Summary account.

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Definitions:

Exculpatory Clauses

Provisions in a contract that release one party from liability for harm caused, typically found in waiver and release agreements.

Courts

Judicial institutions that are authorized to hear and rule on legal disputes.

Exemption

A provision that releases a party from a legal duty, liability, or obligation in specific circumstances.

Misrepresentation

Misrepresentation refers to a false statement of fact made by one party to another party, which has the effect of inducing that party into a contract.