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You Are an Upper-Level Manager in a Firm

question 2

Multiple Choice

You are an upper-level manager in a firm.You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making.Which of the following would best help you to try to correct this problem?

Definitions:

Income Summary

A temporary account used in accounting to aggregate all income and expense accounts for a period, facilitating the transfer of their balances to permanent equity accounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.

Income Summary

A temporary account used in closing process to summarize the results of a period's revenues and expenses.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.