Three Main Types of Relationships Can Exist Between Entities: a One-To-One

question 61

True/False

Three main types of relationships can exist between entities: a one-to-one relationship,abbreviated 1:1;a one-to-many relationship,abbreviated 1:M;and a many-to-many relationship,abbreviated M:N.

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Definitions:

Fiscal Period

A specific time period for which a company prepares financial statements, typically a year or quarter.

Adjusted Trial Balance

A list of all accounts and their final balances after adjustments, used to prepare financial statements.

Income Summary Account

A temporary account used to accumulate all income and expense accounts before transferring the net amount to retained earnings at the end of an accounting period.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders, but retained by the company to be reinvested in its core business or to pay debt.