You Go Through a Series of Steps in Making a Six-Tier

question 88

Short Answer

You go through a series of steps in making a six-tier wedding cake with the "oohs" and "ahhs" of the wedding guests and your payment being the reinforcement for the numerous steps you completed in this example of __________.

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Definitions:

Capital

The financial resources that businesses use to fund their operations and growth.

Closing Process

The final steps in the accounting cycle used to update the financial records for the period's revenues, expenses, and dividends to prepare for the next accounting period.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, illustrating the company's profit or loss.

Income Summary Account

A temporary account used in closing process to transfer the balances of all revenue and expense accounts to Retained Earnings.