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Which of the Following Accounts' Balance Is Carried Forward to the Next

question 120

Multiple Choice

Which of the following accounts' balance is carried forward to the next accounting period?


Definitions:

Net Income

Net income is the total earnings of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's profitability over a specific period.

Prepaid Insurance

Payments made for insurance coverage prior to receiving the benefit, considered a current asset on the balance sheet.

Accrued Interest Expense

Interest that has been incurred but not yet paid, reflecting the cost of borrowing over a period of time.

Profit Margin Ratio

A financial metric used to evaluate a company's profitability by comparing net income to revenue.

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