We Could Avoid Making Word-Recognition Mistakes If We Scrutinized Each

question 20

Multiple Choice

We could avoid making word-recognition mistakes if we scrutinized each letter on the page.This sort of letter-by-letter reading,though,would be problematic because

• A)reading would be very slow.
• B)we do not have the attentional resources to scrutinize every letter.
• C)the visual system would be overwhelmed.
• D)letters are easy to discriminate from one another.

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones and prepare the company's books for the next period.

Income Summary

An account in the ledger that is used to gather all temporary accounts during the closing process, to transfer their balances to permanent accounts.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.

Balance Sheet

A business statement that consolidates the assets, debts, and shareholder equity of a company at a certain point.