The Income Summary Account Is Used

question 18

Multiple Choice

The Income Summary account is used:

• A)To adjust and update asset and liability accounts.
• B)To close the revenue and expense accounts.
• C)To determine the appropriate dividend amount.
• D)In some situations to replace the income statement.
• E)To replace the retained earnings account in some businesses.

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Definitions:

Team Structure

The arrangement and organization of a group of individuals working together towards a common goal, defining roles, responsibilities, and the hierarchy.

Effective Lateral

A term relating to efficient communication and collaboration across different levels or departments within an organization, without relying on hierarchical chains of command.

Cross-functional Structures

Organizational frameworks in which teams or departments comprising individuals with different functional expertise work together towards a common goal.

Network Structure

An organizational form characterized by less hierarchical tiers, with more reliance on informal communication and a focus on decentralizing decision-making processes.