If Income Summary Has a Net Credit Balance,it Signifies

question 122

Multiple Choice

If Income Summary has a net credit balance,it signifies:

• A)A net loss.
• B)Net income.
• C)A reduction of net worth.
• D)Dividends have been declared.

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Definitions:

Discharged

In legal terms, released or freed from an obligation, duty, or liability.

Incidental Beneficiary

A third party who may benefit from a contract between two other parties, albeit unintentionally and without the legal right to enforce the contract terms.

Enforce Agreement

The legal process of ensuring that the terms of a contract are carried out as agreed upon by the parties.

Restatement

Secondary legal sources that seek to clarify, explain, and illustrate the principles of a particular field of law to guide the courts in how the law should be applied.