A Proof of the Equality of Debits and Credits in the Ledger

question 189

True/False

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

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Definitions:

Close Corporations

A designation for corporations with a limited number of shareholders and operations that are more informally managed, often without a board of directors.

MBCA

stands for the Model Business Corporation Act, a model set of laws prepared to assist states in drafting their own corporation statutes.

Preincorporation Services

Services performed or actions taken in the name of a corporation prior to its legal formation.

Gratuitous Promise

A promise made without expecting anything in return, often not legally enforceable due to the lack of consideration.