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Adjusting entries are made before the preparation of financial statements. ( )

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Each adjusting entry can only affect a balance sheet account. ( )

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Current assets are cash and other resources that are expected to be sold, collected or used within one year or the company's operating cycle whichever is longer. ( )

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If a company sells merchandise with credit terms 2/10 n/60, the credit period is 10 days and the discount period is 60 days. ( )

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A partnership ( )

A. Is also called a sole proprietorship.
B. Has unlimited liability for its partners.
C. Has to have a written agreement in order to be legal.
D. Is a legal organization separate from its owners.

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