The Income Summary Account Is Used To

question 186

Multiple Choice

The Income Summary account is used to:

• A)Adjust and update asset and liability accounts.
• B)Close the revenue and expense accounts.
• C)Determine the appropriate dividend amount.
• D)Replace the income statement under certain circumstances.
• E)Replace the Retained earnings account in some businesses.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship between variables.

Physical Height

The measurement of an individual from the base to the top of their body when standing upright.

Popularity

The state of being widely admired, accepted, or sought after by a large number of people.

Unrepresentative

Describing a sample or subset that does not accurately reflect the characteristics of the larger population from which it's drawn.