Another Name for Income Summary Accounts Is

question 74

Multiple Choice

Another name for income summary accounts is

• A) Permanent accounts
• B) Contra accounts
• C) Accrued accounts
• D) Balance column accounts
• E) Temporary account

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the proportion of a company's assets that are financed by shareholder's equity.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes (EBIT) divided by interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected in its income statement.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.