If at the end of an accounting period there is a debit balance in the income summary account, this means that the revenue has exceeded the expense.()
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The cash flow statement shows the relationship of net income to changes in cash balances. Cash balances can decline despite positive net income and vice versa.
Firms choose a fiscal year according to their natural business year, whose year end is a low point in business activity.()
The first five steps in the accounting cycle include analyzing transactions, journalizing, posting, preparing an unadjusted trial balance, and recording adjusting entries()
The accounts listed on the income statement can be named as () because the balances of such accounts will not be carried forward from year to year.