When a Project Is Completed Early with Some Parts of the Project

question 32

Short Answer

When a project is completed early with some parts of the project eliminated this is known as _________ project closure.

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Definitions:

Owner's Drawings

Withdrawals of business assets by the owner for personal use.

Income Summary

An account in which revenues and expenses are summarized, showing the net income or loss for a specific period before closing entries are made.

Net Income

Net income is the total revenue minus total expenses of a business, showing the company's profit during a specific period.

Correcting Entries

Journal entries made to amend previously recorded transactions that were incorrect or incomplete.