If a Corporation Reports a Profit, It Should Be Closed

question 16

True/False

If a corporation reports a profit, it should be closed to retained earnings.If it reports a loss, it should be closed to a contributed capital account.

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Definitions:

Arbitrary Approach

A method or decision-making process based on individual preference or random choice rather than any reason or system, often leading to inconsistency.

Conflict Manager

An individual or role responsible for handling and resolving conflicts within organizations or groups, often using mediation and negotiation skills.

Thomas-Kilman Conflict Model

A model identifying five strategies to handle conflict: avoiding, accommodating, competing, compromising, and collaborating.

Collaborator

Someone who brings both sides together for discussion and not only is most likely to bring about a win-win solution but is actually necessary for it.