Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?

Prepaid Rent is a(n) ________ account and has a normal ________ balance.

A) asset; debit B) liability; credit C) liability; debit D) asset; credit

Which of the following accounts has a balance equal to net income immediately before it is closed?

A) Income Summary B) Dividends C) Net Income D) Retained Earnings