It Is Estimated That It Takes 100 New Product Ideas

question 237

True/False

It is estimated that it takes 100 new product ideas to generate 1 product that finally reaches the marketplace. Even then, only a few of those become successful products.

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Definitions:

Revenue Account

An account that records the income generated from selling goods or providing services, which contributes to a company's gross income.

Income Summary

An account used during the closing process to summarize the year's revenues and expenses before determining and transferring the period's net income or loss to owner's equity.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.