The Income Summary Amounts in the Income Statement Columns of the Worksheet

question 106

Multiple Choice

The income summary amounts in the income statement columns of the worksheet represent:

• A) income for the period.
• B) adjustment for unearned revenue.
• C) closing of the Capital account.
• D) beginning and ending inventory.

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Percentage Calculation

The mathematical process of finding a percentage, which involves multiplying a value by a percent and dividing by 100.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the percentage of income that goes to taxes.

Tax Rate

The percentage of a price or taxable amount that is payable as tax.