A Modified Rebuy Would Be Most Likely When

question 130

Multiple Choice

A modified rebuy would be most likely when

• A)a railroad plans to change from steel to aluminum rail cars in order to cut weight.
• B)a car producer is developing a sportier car which will require wider tires.
• C)a bread producer is placing its weekly order for flour.
• D)a computer producer is buying new assembly line equipment.
• E)a shoe factory needs more glue to attach heels to its shoes.

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Definitions:

Income Summary

The Income Summary is an account where revenues and expenses are compiled to show the net result of a company's operations for a particular period.

Permanent Account

An account within the general ledger that is not closed at the end of the accounting period, including assets, liabilities, and shareholders' equity accounts.

Accounting Time Period

The span of time covered by financial statements, typically a fiscal quarter or year, during which all financial transactions are recorded and reported.

Quarter

A three-month period on the financial calendar that acts as a basis for periodic financial reporting and dividends.