The Balance in the Income Summary Account Before It Is

question 35

Multiple Choice

The balance in the Income Summary account before it is closed will be equal to

• A)the net income or loss on the income statement.
• B)the beginning balance in the Retained Earnings account.
• C)the ending balance in the Retained Earnings account.
• D)zero.

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Definitions:

Smoot-Hawley Tariff

A set of protectionist tariffs enacted in 1930 in the United States, which raised import duties on thousands of goods, contributing to the severity and duration of the Great Depression.

Dumping

The practice of a company selling a product in a foreign market at a price lower than its cost of production or lower than the price in its domestic market.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient international trade.

Economics

The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.