Business Customs That Must Be Recognized and Accommodated Are Called

question 35

Multiple Choice

Business customs that must be recognized and accommodated are called _____.

• A) imperatives
• B) electives
• C) exclusives
• D) exceptionals
• E) constraints

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses for an accounting period before transferring the net income or loss to owner's equity.

Revenue and Expense Accounts

Accounts in the general ledger that track the income generated from sales and the costs incurred during business operations, respectively.

Worksheet

A document or spreadsheet used for planning, adjusting entries, and preparing financial statements before they are finalized in official reports.

Income Statement

A financial statement that reports a company's financial performance over a specific period by detailing revenues, expenses, and net income.