Without Explicit Written Cost-Plus Contracts, Producer Costs Can Be Passed

question 26

True/False

Without explicit written cost-plus contracts, producer costs can be passed on to the buyer.

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Definitions:

Adjustments

These are entries made in accounting to record expenses that have occurred but are not accurately represented in the financial statements at the end of the accounting period.

Journal

A detailed record where all financial transactions of a business are initially recorded before being summarized in the ledger.

Ledger

A ledger is a comprehensive collection of accounts used in accounting to record and summarize all financial transactions.

Capital Account

An account used for a proprietorship that represents the owner’s equity.