Choose the Word or Phrase in [ ] Which Will

question 45

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Annual premiums would be lower with [continuous | limited payment] whole life insurance.

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Definitions:

Income Summary

An account in which the revenues and expenses are transferred at the end of an accounting period to determine the net income or loss.

Owner's Capital

The amount of money and other assets invested in a business by its owner or owners.

Owner's Drawings

The withdrawal of business assets by the owner for personal use.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts in preparation for the new accounting period.