What Are the Key Economic Concepts That Pertain to the Individual

question 28

Essay

What are the key economic concepts that pertain to the individual?

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Definitions:

Long-term

Pertains to assets, liabilities, investments, or obligations that are expected to be resolved or realized beyond one year.

Income Summary

The income summary account is used in the closing process of accounting to summarize revenue and expenses for a specific period, helping determine the net income or loss.

Permanent Account

An account that is not closed at the end of the accounting period and whose balances are carried forward to the next period, such as assets, liabilities, and equity accounts.

Plant Assets

Long-term tangible assets that are used in the operation of a business and are subject to depreciation, excluding land.