The Special Account Used Only in the Closing Process to Temporarily

question 23

Multiple Choice

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:

• A) Income Summary account.
• B) Closing account.
• C) Balance column account.
• D) Contra account.
• E) Nominal account.

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Definitions:

Bylaws

The internal rules of management adopted by a corporation at its first organizational meeting.

Incorporate

The process of legally forming a corporation, which is a type of business entity recognized as separate from its owners.

Articles Of Incorporation

The document that is filed with the appropriate state official, usually the secretary of state, when a business is incorporated and that contains basic information about the corporation.

Registered Office

The official address of a company or organization, registered with the appropriate legal authorities, where official documents are sent.