The Income Summary Account Is Used

question 35

Multiple Choice

The Income Summary account is used

• A)To replace the income statement under certain circumstances.
• B)To replace the capital account in some businesses.
• C)To close the revenue and expense accounts.
• D)To determine the appropriate withdrawal amount.
• E)To adjust and update asset accounts.

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Definitions:

Private Good

A product or service that is consumed by one individual without providing benefit to others and is subject to exclusion and rivalry.

Fish Fillet

A piece of fish that has been cut or sliced away from the bone, often prepared as a food item.

Excludable

A property of a good or service whereby it is possible to prevent people from using it if they have not paid for it or met specific conditions.

Club Good

A type of good that is excludable but non-rivalrous, meaning people can be prevented from using it, but one person's use does not diminish availability for others.