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

question 27

Multiple Choice

The entry to close the revenue account(s) was entered in reverse-Income Summary was debited and the revenue account(s) was/were credited. 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:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model, from basic (physiological) needs to higher-level (self-actualization) needs.

Needs

Fundamental requirements that individuals or groups must have met in order to function or survive.

Hierarchical

A structure or organization in which entities are ranked one above the other according to status or authority.

Family Life Cycle

A series of stages through which a family progresses over time, including events like marriage, parenthood, retirement, and the death of family members.