A Sales Item Must Be Associated with an Income Account

question 24

True/False

A Sales Item must be associated with an Income Account.

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Definitions:

Production Flexibility

The capability of a manufacturing system to adapt efficiently to changes such as new product introductions, production volume adjustments, and design alterations.

Corporate Governance

The system by which a company is directed and controlled. If properly implemented it should provide incentives for top management to pursue objectives that are in the interests of the company and it should effectively monitor performance.

Annual Tax Returns

are yearly reports filed with a governmental body declaring income, profits, and losses to determine tax liability.

Financial Accounting

The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.