The balance of this account shows the net income or net loss for the period before it is closed to the capital account.
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The balance of this account shows the net income or net loss for the period before it is closed to the capital account.
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- The chart of accounts lists capital accounts first, followed by liabilities, assets, expenses, and revenue.Revenues and expenses may be transferred to the ________ account before their final transfer into the Retained Earnings account. A. Dividends B. Income Summary C. Net Income D. AssetsAssuming the entity paid its liabilities incurred prior year, what is the proper debit for this transaction? a.) Accounts Receivable b.) Supplies Expense c.) Cash d.) Accounts Payable
- It is added to income received to determine the total income for the year that is recorded under the accrual basis of accounting: a. deferred income - ending b. prepaid expense - beginning c. accrued income - beginning d. deferred income - beginningWhich of the following best describes the statement of profit or loss?A It is a summary of assets and expenses at a specified dateB It is a summary of cash receipts and payments made during an accounting periodC It is a summary of assets, liabilities, income and expenses at a specified dateD It is a summary of income and expenditure for an accounting periodWhich financial statement is dated at the moment in time when the accounting period ends? Statement of retained earnings Income statement Balance sheet Statement of cash flows
- Bills for collection are shown O a. On Assets side of the balance sheet O b. On liabilities side of the balance sheet Oc. On the income side of the income statement Od. As note below the balance sheetThe Income Summary is always closed into the Capital account by the amount of: Select one: Revenue minus expenses Total assets minus total liabilities plus owner’s equity The Net Income from the previous year’s closed accounts Liabilities minus Capital plus drawingsWhich of the following statements regarding the income statement are true? Group of answer choices A. The net income from the income statement is included on the asset section of the balance sheet. B. The income statement shows the cash flows from operations during a period of time. C. Net income or loss from the income statement is included in the calculation of ending retained earnings on the Statement of Retained Earnings. D. The income statement shows how much the company owes.
- Explain the difference between the current account and the capital and financial account in the balance of payments.The net assets approach of computing for the net income requires this item to be added to the ending capital. a. Beginning capital b. Additional investments c. Withdrawals d. Increase in LiabilitiesIt is added to income received to determine the total income for the yearthat is recorded under the accrual basis of accounting A. deferred income - endB. prepaid expense - begC. accrued income - begD. deferred income - beg