The "Comply or Explain" Methodology Refers to the Set of Guidelines

question 70

True/False

The "comply or explain" methodology refers to the set of guidelines that requires companies to abide by a set of operating standards or face stiff financial penalties.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts.

Net Income

The remaining earnings of a corporation after deducting all operating costs and tax obligations from its revenue.

Dividends Declared

The action by a company's board of directors to distribute a specified amount of the company’s earnings to its shareholders.

Income Summary

An account to which the revenue and expense accounts are transferred at the end of a period to summarize the results of operations.