When You Are Writing About the Results of Something, You

question 16

Multiple Choice

When you are writing about the results of something, you are writing about _____.

• A) effects
• B) causes
• C) categories
• D) descriptions

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Definitions:

Real Account

An accounting record that represents assets, liabilities, and owner’s equity, and is not closed at the end of the accounting period but carried over to the next.

Nominal Account

An account related to income, expenses, losses, or gains—these accounts are closed out to the capital account at the end of an accounting period.

Income Summary

An account to which all income statement account balances are transferred at the end of an accounting period to show the period's profit or loss.

Debit Balance

A situation in accounting where the sum of debits in an account exceeds the sum of credits, often indicating the extent of assets or expenses.