Entries Are Recorded at the End of a Financial Year

question 39

Multiple Choice

entries are recorded at the end of a financial year to reduce expense and income accounts to zero balances.

• A) end of period.
• B) adjusting.
• C) closing.
• D) correcting.

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Definitions:

Causa Mortis Gift

A gift given by someone who believes they are about to die, intended to take effect only upon the death of the giver.

Inter Vivos

Describes actions or transactions that take place during the lifetime of an individual, often used in the context of gifts or trusts created while the donor is alive.

Grandfather

A term often used to describe clauses that exempt certain individuals or entities from new regulations based on previous conditions.

Bailment

The legal relationship created when personal property is transferred from one party to another under agreement that the property will be returned or otherwise disposed of according to the owner's directions.