The Special Account Used Only in the Closing Process to Temporarily

question 59

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) Temporary account

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Definitions:

Mandatory Issue

A topic or item that must be addressed or complied with due to legal, regulatory, or policy requirements within an organizational context.

Collective Bargaining

The process of negotiating terms of employment between an employer and a group of employees (usually represented by a union) to reach agreements that regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Wage Rates

The amount of money paid to an employee for a specified quantity of work, usually expressed per hour or per piece.

Bargaining Impasse

A deadlock in negotiations between two parties, typically involving labor unions and employers, where no agreement can be reached.