Pat Just Found Out That She Must Give a Class

question 73

Multiple Choice

Pat just found out that she must give a class presentation in 10 days.To this end,Pat breaks down the task of preparing for her presentation into specific,manageable steps she must take to do a good job.This problem-solving strategy primarily involves

• A)analysis.
• B)synthesis.
• C)divergent thinking.
• D)convergent thinking.

---

Definitions:

External Transactions

Financial transactions between a business and an outside party, which can include buying from or selling to another company.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends, but rather kept by the company for reinvestment in its operations or to pay debt.

Closing Process

The accounting procedures used to close out business accounts at the end of an accounting period.

Income Summary Account

A temporary ledger account used during the closing process that accumulates revenues and expenses before transferring the net amount to the capital or retained earnings account.