The Income Summary Account Is Used To

question 186

Multiple Choice

The Income Summary account is used to:

• A)Adjust and update asset and liability accounts.
• B)Close the revenue and expense accounts.
• C)Determine the appropriate dividend amount.
• D)Replace the income statement under certain circumstances.
• E)Replace the Retained earnings account in some businesses.

Recognize and apply various ArrayList methods for manipulating and querying data.

Understand memory management techniques for optimizing ArrayList usage.

Grasp the limitations and disadvantages of using ArrayLists.

Learn how to create and manipulate generic classes.

---

Definitions:

Revenue Accounts

Accounts that track the income generated by a company from its normal business operations or other activities.

Closing Entries

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

Prepaid Insurance

An asset account that represents the amount of insurance premium payments made in advance for coverage extending beyond the current accounting period.

Adjusting Entry

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