An Enduring Conception of Right or Wrong, Good or Bad

question 24

Multiple Choice

An enduring conception of right or wrong, good or bad is a

• A) belief.
• B) reason.
• C) value.
• D) attitude.

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Definitions:

Retained Earnings

The portion of net income left over after dividends are paid out to shareholders, reinvested into the company's operations.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.

Total Revenues

The total amount of income generated by a business from its normal business operations, including sales of goods or services, before any expenses are deducted.

Income Summary

An account used in the closing process during the accounting cycle that summarizes the results of operations—revenues and expenses—before transferring the net income or loss to the owner's equity.