reconciliation of a bank account is necessary because the balance per bank and balance per books are seldom in agreement. The lack of agreement may be the result of time lags and errors. *

True

False

A partnership is created by a contract expressing the voluntary agreement of two or more individuals called a partnership agreement or articles of co-partnership. The partnership agreement should contain information such as name and principal location of the firm, the purpose of the business, and date of inception. *

True

False

Capital expenditures are expenditures to maintain the operating efficiency and expected productive life of the long-term asset. They are debited to Repairs Expense as incurred and are often referred to as revenue expenditures. *

True

False