Significant Differences Exist in Terms on Financial Statements Around the World.For

question 45

Multiple Choice

Significant differences exist in terms on financial statements around the world.For example,another name for what we know as Capital Stock in the United States is

• A)Share Capital.
• B)Capital Reserves.
• C)Provisions for Other Risks.
• D)Deferred Income.

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Definitions:

Income Summary Account

The income summary account is used during the closing process to compile all income and expense transactions, facilitating the determination of a business's net income.

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.

Withdrawals

Amounts taken out from a business by its owners for personal use, often affecting the owner's capital account.

Ending Inventory

The worth of products on hand for sale at the conclusion of an accounting cycle, determined by adding the starting inventory to acquisitions and then subtracting the cost of goods sold.