Kyle Could Feel Himself Coming Down with a Nasty Cold

question 125

Multiple Choice

Kyle could feel himself coming down with a nasty cold. His roommate, Dave, had been bragging about a new cold remedy he had discovered, guaranteeing that the remedy cured the common cold. Kyle went to Dave's room and asked him some questions about this new cure. Kyle was demonstrating critical thinking skills by asking

• A)what advertising the manufacturers had done to support their claim of a cure
• B)to try a sample of the remedy
• C)whether there was another plausible explanation for the remedy curing the common cold
• D)how much of the remedy needs to be taken and how often it needs to be taken

---

Definitions:

Income Summary

An account used in the closing process that summarizes the results of all revenue and expense accounts.

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or corporation.

Withdrawal Account

An account from which funds can be withdrawn by the account holder; in the context of business partnerships, it refers to an account used by an owner or partner to draw funds from the business.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the net income to retained earnings.