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An interval scale is preferable to an ordinal scale because
Capital Balances
The amount of money that partners or owners have invested in a business, often reflected in the equity section of the balance sheet.
Net Income
Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, representing the actual earnings retained.
Closing the Revenue
The process of transferring the balances from revenue accounts to a permanent equity account at the end of an accounting period.
Capital Account Balance
The amount in a company or partnership's capital account, representing ownership interest in the entity.
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