Choose the Word or Phrase in [ ] Which Will

question 146

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A proper use of open account credit would be to buy a [food | washing machine].

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Definitions:

Net Income

The total revenue of a business minus total expenses, indicating the company's profit after all expense deductions.

Income Statement

A financial statement that reports a company's revenues and expenses over a specific period, showing the net profit or loss.

Adjustments Column

Part of an accounting worksheet where entries are made to update account balances before preparing financial statements.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders. Often reinvested in the business or used to pay off debt.