The balance in the income summary account before it is closed will be equal to O the net income or loss on the income statement. O the beginning balance in the retained earnings account. O the ending balance in the retained earnings account. zero.

Q: Select the best order for the following items in the income statement: 1. Income from continuing…

A:

Q: What item flows from the statement of retained earnings to the balance sheet?a. Cashb. Dividendsc.…

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: Which of the following is a temporary account?Multiple Choice Retained Earnings Accounts…

A: Temporary account is an account whose balance is transferred to permanent account at the time of…

Q: from an analysis of the retained earnings columns, compute the net income or net loss

A: Retained earning is part of total income available after all distribution. It includes current year…

Q: The statement 'revenue is recognized in the accounting period in which the performance obligation is…

A: The revenue recognition principal state that the the revenue should be recognised in books when the…

Q: If the 'bottom line' on the Income Statement section of a worksheet shows a net income, the amount…

A: The objective of the question is to understand the correct placement of net income in the worksheet…

Q: can refer to a company's remaining revenues after paying all expenses and taxes. Select one: a.…

A: Revenue is the total amount of income generated by business by way of selling of goods and services.…

Q: Which Expense account is usually shown as the last Expense item on the Income Statement, regardless…

A: INCOME STATEMENT income Statement is one of the Important Financial Statement of the Company. It…

Q: "E" in EBT abbreviation means Select one: a. equity b. gross profit

A: SOLUTION- Operational profit, also known as operating profit or operating income, is a company's…

Q: 1. What does the beginning balance of retained earning indicate? And what does the following that is…

A: Retained earnings are the accumulated earnings of the business that is fully attributable to the…

Q: The profit and loss statement is also known as the O a. Statement of financial position O b.…

A: The profit and loss statement is prepared to find net profits or losses during period.

Q: it of What is considered a summary of profit or loss? Select one: a. Retained earnings b.…

A: The correct answer to the question is "C. Income Statement"Income statement is considered as summary…

Q: When considering the interrelations of financial statements, name two specific financial statements…

A: Financial statements are comprehensive reports that provide a summary of a company's financial…

Q: 1) On the Statement of Retained Earnings where does the Beg Balance of RE come from?2) Also…

A: Part-1.The beginning balance of Retained earnings are available in the Trial balance. As the…

Q: A debit balance in the Retained Earnings accounts is reported as a (an) a. asset b.…

A: Retained Earnings refers to amount of Profit set aside by the company during the year. it is known…

Q: 3) State the increase side (debit or credit) for each of the following accounts. a. Inventory b.…

A: Revenue/Income have credit balance Expenses have debit balance. Equity have credit balance

Q: The Dividends Declared account has a normal debit balance. True False

A: Dividends declared account has a normal debit balance.

Q: Which one of the following is a nominal (temporary) account?   Select one: Supplies Dividends…

A: Under traditional accounting, the accounts are categorized as nominal accounts and real accounts.…

Q: m retained earningsi or the fact that

A: Retained earnings are part of equity of the owner. It is the income earned and retained in business.…

Q: I. No entry is required on date of declaration. II. Dividends declared is closed to the retained…

A: Dividend means the amount given to shareholder of the company as profit distribution by…

Q: When do we use the Income Summary Account? OA. At the beginning of the financial year to close net…

A: The income summary account provides the summary for loss or profits earned by business during…

Q: Which of the following types of accounts appear on the Statement of Financial Position and Statement…

A: Permanent accounts are those accounts that carry balances forward from one accounting period to the…

Q: balance sheet account “roll forward”

A: Roll forward of accounts means carrying forward the closing balance of accounts to next accounting…

Q: Accrued expenses (accrued liabilities) are: C . expenses that have been reported on the income…

A: An accrued expense is an expenditure reported in the time in which the expense is incurred that is…

Q: 7. When the debit column total of the income statement section of the work sheet is greater than the…

A: Income statement is the financial statement that records the income and expenses of the business.…

Q: Explain why the Dividends account is closed directly to theRetained Earnings account.

A: Dividend: It can be defined as the distribution of the net profits of the company to its…

Q: Which of the following will be subtracted while calculating ending equity under statement of changes…

A: Amount to be subtracted from the value of equity is owners drowning, treasury stock, or buyback of…

Q: Which of the following is (are) deducted from EBIT to determine net income? A. Earnings per share B.…

A: Lets understand the basics.EBIT is abbreviation of "Earning before interest and tax". Net income is…

Q: The normal balance of an expense account is a O A. debit; retained earnings OB. debit; assets OC.…

A: The different accounts in the business have debit and credit balance. The assets and expenses have…

Q: It is required to present earnings per share for: Select one: a. income from continuing operations…

A: The measure of a company's profitability that is given to each existing share of common stock is…

Q: 24. The income summary account a. is a permanent account. C. appears on the income statement. b.…

A: The income summary account is a temporary account in which the balance of other temporary account is…

Q: ebits and total credits in the income statement column has to be the same as the difference between…

A: A worksheet (sometimes known as a spreadsheet) is made up of cells into which data may be entered…

Q: Which Expense account is usually shown as the last Expense item on the Income Statement, regardless…

A: Income statement will be prepared  before the  preparation of the statement of owner’s equity…

Q: The type of account and normal balance of retained earnings is  stockholders equity, credit…

A: A company generally does not distribute all its earning amongst shareholders as dividend. A portion…

Q: recorded under the accrual basis of accounting A. deferred income - end B. prepaid expense - beg C.…

A: (c) Accrued income-beg , is added to income received to determine the total income for the yearthat…

Q: The Income Summary account appears on the statement of financial position. O appears on the income…

A: Income summary account is a temporary account in which all expenses and revenues closing balances…

Q: What is reported in the discontinued operations section of the income statement?

A: Discontinued Operations: It is the second section after the continuing operations on the income…

Q: After closing entries are posted, the ending balance of Retained Earnings on the general ledger…

A: Closing entries are prepared to zero out all temporary accounts including revenues, expenses, income…

Q: The balance of an unearned revenue account:

A: The balance sheet shows the financial position of the company that includes the assets, liabilities,…

Q: How are discontinued operations reported in the income statement?

A: Discounted operations:   These operations refer to the disposal of sale of significant element of…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.