On Flex Company's Worksheet the Revenue Account Had a Normal

question 130

Multiple Choice

On Flex Company's worksheet the revenue account had a normal balance of $4,100. The entry to close the account would include a

• A) debit to Income Summary for $4,100.
• B) credit to Income Summary for $4,100.
• C) debit to Flex, Capital for $4,100.
• D) credit to Revenue for $4,100.

---

Definitions:

Equivalent Cash Value

The cash amount equivalent to the value of a non-cash item, often used in contexts like insurance settlements or lottery winnings.

Monthly Payment

The specific amount of money paid each month, typically in the context of loans or leases.

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied twice a year.

Amortization Period

Refers to the total time taken to pay off a debt in regular installments until the loan amount and interest are paid in full.