________ Refers to Changes Made to a System to Avoid

question 88

Short Answer

________ refers to changes made to a system to avoid possible future problems.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue; often referred to as the bottom line.

Revenue and Expense Account Balances

The amounts recorded in accounts tracking the income earned and expenses incurred by a business over a period of time.

Owner's Capital Account

An equity account on the balance sheet representing the owner's investment and retained earnings in the business.

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debit and credit, ensuring that the total debits equal total credits, which is crucial for the accuracy of financial statements.