Question 8. Question :
An account linked with another
account that has an opposite normal balance and that is
subtracted from the balance of the related account is a(n):
Question 9.
is used:
Question :
The Income Summary account
To adjust and update asset and liability
accounts
To close the revenue and expense
accounts
To determine the appropriate dividend
amount
In some situations to replace the
income statement
To replace the retained earnings
account in some businesses
Question 10. Question :
accounting:
The accrual basis of
Is generally accepted for external
reporting since it is more useful for most business decisions
Is flawed because it gives complete
information about cash flows
Recognizes revenues when received in
cash