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According to Weick's assumption of inertia, planned, intended change is necessary in order to disrupt the forces that contribute to a lack of change in an organization so long that there is a lag between environmental change and organizational adaptation.
Prepaid Insurance
An asset account that reflects insurance payments that are made in advance for future insurance coverage periods.
Retained Earnings
The portion of net income that is not distributed to shareholders but instead reinvested in the business or used to pay off debt.
Insurance Expense
The cost incurred by an entity to obtain insurance coverage, recognized as an expense over the period the insurance provides coverage.
Post-Closing Trial Balance
A list of all accounts and their balances after closing entries are made, used to check the balance of debits and credits.
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