Balance Sheet Accounts

question 195

Multiple Choice

Balance sheet accounts

• A) represent amounts accumulated during a specific period of time
• B) are called real accounts
• C) have zero balances after the closing entries have been posted
• D) are not affected by adjustments

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Definitions:

Manufacturers

Entities involved in the process of converting raw materials into finished products through various means, including physical, labor-intensive, or mechanical processes.

Distributors

Entities that buy products directly from manufacturers and sell them to retailers or end consumers, acting as intermediaries in the supply chain.

Legal Consideration

An essential element in contract law that refers to something of value exchanged between parties as part of an agreement, which is necessary for the contract to be enforceable.

Promissory Estoppel

A legal principle that enforces a promise in absence of a formal contract, provided individuals have acted in reliance on that promise.