Use the Following Account Balances from the Adjusted Trial Balance

question 8

Multiple Choice

Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question. Select the correct closing entry that RB Auto would make to close the owner's withdrawal account at the end of the accounting period.

• A) debit R.Holloway,Drawing $500 and credit Income Summary for $500.
• B) debit Income Summary $500 and credit R.Holloway,Drawing for $500.
• C) debit R.Holloway,Capital $500 and credit R.Holloway,Drawing for $500.
• D) debit R.Holloway,Drawing $500 credit R.Holloway,Capital for $500.

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Definitions:

Misleading Information

Refers to false or deceptive information that can affect memory, perception, or understanding, often studied in the context of eyewitness testimony and media.

Loftus

Elizabeth Loftus is a cognitive psychologist and expert on human memory, known for her research on the malleability of human memory and the misinformation effect.

Recall

The act of retrieving information or memories from the past, without the aid of specific cues for what is being remembered.

Proactive Interference

A phenomenon in memory research where older information interferes with the recall of newer information.