The Temporary Account Balances Ultimately Wind Up in What Account

question 46

Multiple Choice

The temporary account balances ultimately wind up in what account?

• A)Income Summary.
• B)Retained Earnings.
• C)Share Capital-ordinary.
• D)Comprehensive Income.

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Definitions:

Economic Condition

Refers to the current state of the economy in a particular area or globally, often evaluated based on factors like GDP, employment rates, and inflation.

Credit Risk

The possibility that a borrower may default on any type of debt by failing to make required payments.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, listing assets, liabilities, and equity at a specific point in time.

Accounting Equation

The foundational equation in accounting, articulated as Assets = Liabilities + Owner's Equity, representing the relationship between a company's resources and claims on those resources.