The Balance in the Income Summary Account Before It Is

question 139

Multiple Choice

The balance in the income summary account before it is closed will be equal to

• A) the net income or loss on the income statement.
• B) the beginning balance in the owner's capital account.
• C) the ending balance in the owner's capital account.
• D) zero.

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Definitions:

Inflation

How quickly the average price of goods and services elevates, lessening the power to purchase.

APR

Annual Percentage Rate, the annual rate charged for borrowing or earned through an investment, which includes all fees and costs associated with the transaction.

Mortgage Rate

The interest rate charged on a mortgage loan, determined by the lender, which affects the monthly payments and total amount paid over the life of the loan.

Annualized (Geometric)

Refers to a method of converting short-term rates of return into longer-term rates that account for the effect of compounding over a full year.