If Margo and Bruce Purchase and Operate an Ice Cream

question 39

True/False

If Margo and Bruce purchase and operate an ice cream store, for tax purposes they have formed a partnership.

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Definitions:

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period.

Expenses

Economic costs that a business incurs through its operations to earn revenue.

Trial Balance

A bookkeeping report that lists the balances in each general ledger account at a specific point in time, used to check the accuracy of bookkeeping entries.

Debit Column

The side of an accounting ledger where increases in assets, expenses, and withdrawals are recorded.