The Survey Question, "Do You Feel That, If People Were

question 26

Multiple Choice

The survey question, "Do you feel that, if people were not allowed to park along this street, children would not be able to play here?" is a poor survey question because it is:

• A) Too close-ended
• B) A biased question
• C) A question that uses double negatives
• D) Too open-ended

Demonstrate how to close revenue and expense accounts to the Income Summary account.

Explain the role of the Income Summary account in the closing process.

Understand the impact of closing entries on the owner's capital account.

Calculate the ending owner's equity based on net income/loss and owner's drawings.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards used in the United States for financial reporting.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that are becoming the global standard for the preparation of public company financial statements.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.