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How does the need for cognitive closure influence decision making?
Operating Cycle
The duration of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from these sales.
Fiscal Year
A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.
Owner's Drawings
A withdrawal by the owner of a business for personal use, reducing the equity in the business.
Income Summary
An account used during the closing process that aggregates all income and expense accounts to determine the net profit or loss.
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