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A technician is checking a car for loose and erratic steering. When an assistant moves the steering wheel left and right, he notices the entire steering rack moving back and forth about one-half inch. He checks the tightness of the rack mounting bolts and finds that they are torqued to specifications. What could be the problem?
Adjustments Column
Part of an accounting worksheet where entries are made to update account balances before preparing financial statements.
Retained Earnings
The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders. Often reinvested in the business or used to pay off debt.
Income Summary Account
An account used to transfer the balances of temporary accounts to a permanent account at the end of an accounting period, summarizing revenue and expenses.
Closing Process
The procedure at the end of an accounting period where income and expense accounts are cleared out to start the new period with a zero balance.
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