In the First Space Below,indicate Whether Each Account Is a Real

question 10

Essay

In the first space below,indicate whether each account is a real or nominal account using (R)Real Account and (N)Nominal Account.In the second space below,indicate by an (X)if the account should be closed.
$\begin{array}{c}\begin{array}{lll}\underline{\text { N }}\\----\\----\\----\\----\\----\\----\\----\\----\\----\\\\\end{array}\begin{array}{lll}\underline{\text { X }}\\----\\----\\----\\----\\----\\----\\----\\----\\----\\\\\end{array}\begin{array}{lll} \text {0. Advertising Expense}\\ \text {1. Prepaid Insurance}\\ \text {2. Service Fees}\\ \text {3. Depreciation Expense}\\ \text {4. Accumulated Depreciation}\\ \text {5. Salaries Payable}\\ \text {6. Prepaid Rent}\\ \text {7. Income Summary}\\ \text {8. Insurance Expense}\end{array}\end{array}$

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Definitions:

Vertical Merger

Merger that combines firms operating at different levels in the production and marketing process.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or other business activity.

Conglomerate Company

A Conglomerate Company is a large corporation composed of several companies with diverse or unrelated business interests.

Horizontal Merger

The combination of two or more firms operating in the same industry and at the same stage of production.