The Income Summary Account Is Credited in the Entry That

question 142

Multiple Choice

The Income Summary account is credited in the entry that closes

• A)the Withdrawals account.
• B)expense accounts.
• C)net income.
• D)revenue accounts.

---

Definitions:

Forward Rates

Future interest rates derived from current term structure of interest rates or from the interest rate swap market, predicting future financial market conditions.

Short-Run Exposure

Refers to the degree to which a company's financial performance is affected by fluctuations in foreign exchange rates over a short period.

Home Currency Approach

A method of currency risk management that converts all foreign currencies and related activity into the domestic currency of the company for analysis and reporting.