Asset and Liability Accounts Are Closed to the Income Summary

question 28

True/False

Asset and liability accounts are closed to the Income Summary account.

---

Definitions:

External Problems

Issues or challenges that originate outside of an organization which can impact its performance or operations, such as market competition, regulations, or economic conditions.

Organizational Development (OD)

A planned, organization-wide effort to increase an organization's effectiveness and health through interventions in its processes, utilizing behavioral science knowledge.

Organization's Culture

The set of shared beliefs, values, norms, and practices that shapes the behavior and thinking of all members within an organization.

Unfreeze, Change, Refreeze

A three-stage model in change management where 'unfreeze' means preparing for change, 'change' is the implementation of the change, and 'refreeze' is solidifying or stabilizing the change.