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Describe what qualities are considered essential for "good judging."
Net Income
The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.
Adjusting Journal Entry
A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.
Insurance Expense
The cost attributed to procuring insurance for business operations, properties, liability, and other risk management purposes, treated as an expense on the income statement.
Prepaid Insurance
An asset account representing insurance payments made in advance for coverage that extends to future periods.
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