In Export Co

question 5

Multiple Choice

In Export Co.v.Imports,Inc.,there is no precedent on which the court can base a decision.The court can consider,among other things,

• A)neither public policy nor social values.
• B)public policy only.
• C)public policy or social values.
• D)social values only.

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Definitions:

Owner's Capital

The amount of money and assets invested in a business by its owner, minus any withdrawals.

Net Income

The residual financial gain of a business following the deduction of every expense, tax, and cost from its total revenue.

Accounting Cycle

The collective process of recording and processing the accounting events of a company, culminating in the production of financial statements within a specific period.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for an accounting period before transferring the net income or loss to owner's equity.