The Income Summary Account Line on the Work Sheet

question 58

Multiple Choice

The Income Summary account line on the work sheet

• A) has a debit and a credit side.
• B) relates to adjusting merchandise inventory.
• C) is the only account in which we don't combine the debit and credit figures.
• D) is all of these.
• E) is none of these.

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Definitions:

Sufficient Consideration

A necessary element in contract law where something of value is exchanged between parties to form a valid contract.

Illusory Promises

Statements or promises that appear to assure performance or commitment but, due to vague or conditional terms, do not actually bind the promisor to any action.

Forbearance

A temporary postponement of mortgage payments granted by a lender or creditor in lieu of forcing the property into foreclosure, allowing the borrower time to catch up on payments.

Breach of Contract

A violation of the terms or conditions as stated in a contract, which may result in legal action or penalties against the party at fault.