The Entry to Close the Expense Account(s) Was Entered in Reverse-Income

question 58

Multiple Choice

The entry to close the expense account(s) was entered in reverse-Income Summary was credited and the expense account(s) was/were debited. The result of this error is that

• A) before closing it, Income Summary will have a credit balance.
• B) before closing it, Income Summary will have a debit balance.
• C) the assets will be overstated.
• D) the liabilities will be overstated.