Descriptive Decision Models

question 62

Multiple Choice

Descriptive decision models:

• A) aim to predict what will happen in the future.
• B) describe relationships but do not tell a manager what to do.
• C) help analyze the risks associated with various decisions.
• D) do not facilitate evaluation of different decisions.

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Definitions:

Annually

Occurring once every year.

Income Summary Account

An account used in the closing process to summarize the period's revenues and expenses before transferring the net income or loss to retained earnings.

Owner's Capital Account

Represents the total equity or investment that the owner has in the business, including initial investment and subsequent profits or losses.

Balance

The amount of money or value remaining in an account after accounting for debits and credits.