Talk About: -Oxford and Cambridge

question 42

Essay

Talk about:
-Oxford and Cambridge

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Definitions:

Income Summary

An account used in the closing process that summarizes the results of operations—revenues and expenses—over a specific period before transferring the net amount to retain earnings.

Accounting Cycle

A complete cycle that describes the steps in recording and processing financial transactions of a company from when the transaction occurs to its representation on the financial statements, and until the accounts are closed.

Pro Forma Statements

Pro forma statements are financial reports that project the future financial performance of a company based on current and past data, assuming certain conditions or events.

Unearned Revenue

Money received by a company for services or products yet to be delivered or provided, considered a liability until the service or product is delivered.