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In assessing alternatives, explain the four criteria to evaluate the pros and cons of alternative courses of action.
Income Summary Account
An account used during the closing process in accounting that summarizes the revenues and expenses of a period to calculate the net income or loss.
Net Income
The net income of a company once all costs and taxes are deducted from the overall revenue.
Capital Account
A capital account tracks the net value of a company's assets contributed by its owners and investors plus retained earnings or minus any distributions to owners.
Ending Capital Balance
The amount of money that a company or individual has in their capital account at the end of a fiscal period, after all transactions have been accounted for.
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