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.

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Definitions:

State Substantive Law

Laws that govern how matters such as contracts, property, and family issues are to be handled within a state.

Federal Procedural Law

Rules that govern the procedures for courts and judicial administration within the federal legal system.

Arbitrator Award

The final decision made by an arbitrator or arbitration panel in a dispute resolution process, which is binding and enforceable upon the parties involved.

Verdict

The decision made by a jury or judge in a legal case, concluding the trial and determining the outcome.