________ Refers to a General Expectation That the Words, Promises

question 87

Multiple Choice

________ refers to a general expectation that the words, promises, and statements of individuals and groups can be relied upon.

• A) Trust propensity
• B) Moral judgment
• C) Moral awareness
• D) Moral intensity
• E) Propriety

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Definitions:

Retained Earnings

Profits that a company keeps after dividends are paid to shareholders, used for reinvestment in the business or to pay off debt.

Closing Entry

A closing entry is an accounting procedure used at the end of an accounting period to transfer the balances from temporary accounts to permanent ones, thus preparing the accounts for the next period.

Prepaid Insurance

An asset account that reflects insurance payments that are made in advance for future insurance coverage periods.

Retained Earnings

The portion of net income that is not distributed to shareholders but instead reinvested in the business or used to pay off debt.