In 2012, Hal Furnishes More Than Half of the Support

question 36

True/False

In 2012, Hal furnishes more than half of the support of his ex-wife and her father, both of whom live with him.The divorce occurred in 2011.Hal may claim the father-in-law and the ex-wife as dependents.

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Definitions:

Perpetual

A method of inventory management where updates are made continuously as transactions occur.

Income Summary

An account used during the closing process that summarizes revenues and expenses for a specific accounting period before the net income or loss is transferred to retained earnings.

Inventory

Items meant for sale during regular business operations, currently being produced for that purpose, or intended as materials to be used in manufacturing.

Periodic System

An inventory system where inventory records are updated at specific intervals, as opposed to continuously.