Carlos Has Had a Very Successful Year

question 157

True/False

Carlos has had a very successful year.His small-business corporation earned over $500,000.His company will have to pay part of its income to the federal government for income taxes.

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including income statement, balance sheet, and cash flow statement.

Permanent/Temporary

Terms used to differentiate between accounts that remain open over fiscal periods (permanent) and those closed at the end of a period (temporary).

Normal Balance

The side of an account (debit or credit) on which increases in the account are recorded, depending on the account type.

Financial Statement

Reports that provide an overview of a company's financial condition at a specific time, including income statement, balance sheet, and cash flow statement.