If a Corporation Reports a Net Income, It Should Be

question 9

True/False

If a corporation reports a net income, it should be closed to retained earnings.If it reports a loss, it should be closed to the contributed surplus account.

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Definitions:

Activity-Based Costing

An accounting method that assigns overhead and indirect costs to related products and services based on the activities that generate costs.

Activity Cost Pools

Accumulations of costs categorized by activity (such as ordering materials or setting up machines), used in activity-based costing to allocate costs more accurately.

Resource Consumption

The amount of resources used by an organization or process, often analyzed for efficiency improvements or environmental impact.

Idle Capacity

The portion of a company's resources or production capacity that is not being used in production but still incurs costs.