An Accountant Is Under Pressure to Maximize the Company's Net

question 13

True/False

An accountant is under pressure to maximize the company's net income at year-end.He is told to delay orders of important services until the following year.This action would be considered unethical because it is a misrepresentation of actual transactions.

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Definitions:

Fees Earned Account

An income account that records the revenue earned from services provided or fees charged.

Capital Account

An account on the balance sheet representing the cumulative amount of the company's earnings, investment, or losses.

Income Summary

An account in the ledger used to summarize revenues and expenses for a period, helping to determine the net income or loss.

Income Summary Account

A temporary ledger account used to summarize a period’s revenues and expenses before transferring the net result to the company's equity account(s).