Having Money Taken at Regular Intervals from Your Paycheck and Put

question 18

Multiple Choice

Having money taken at regular intervals from your paycheck and put into a mutual fund is an example of:

• A)an automatic investment plan.
• B)an authorized deduction plan.
• C)a systematic withdrawal plan.
• D)a conversion privilege.
• E)a retirement plan.

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Definitions:

Revenue Account

An account that tracks the income earned from normal business operations, such as sales of goods or services, distinguished from other types of income.

Withdrawal Account

A withdrawal account is an account in a partnership or sole proprietorship from which an owner can withdraw his or her share of the business profits.

Closing Process

The closing process involves summarizing revenue and expense accounts and transferring net income or loss to owner's equity to prepare the company's books for the next accounting period.

Post-Closing Trial Balance

A financial report created after closing entries are made, listing all the account balances to ensure that debits equal credits.