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An expense account is normally closed by debiting Income Summary and crediting the expense account.

Profit margin can also be called return on sales.

The adjusting entry to record an accrued expense is:

The return on total assets can be calculated as profit margin times total asset turnover.

The dollar change for a comparative financial statement item is calculated by:

Adjusting entries are made after the preparation of financial statements.

A trial balance prepared after adjustments have been recorded is called a(n):

The full disclosure principle:

Investing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (c) lending and collecting on loans.

The full disclosure principle: