The Entry to Close Income Summary (Net Loss) Was Entered

question 77

Multiple Choice

The entry to close Income Summary (net loss) was entered in reverse-Income Summary was debited and Capital was credited. This error will cause

• A) Income Summary to have a credit balance.
• B) Income Summary to have a debit balance.
• C) the assets to be overstated.
• D) the liabilities to be overstated.

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Definitions:

Prediction

The act of forecasting future events or outcomes based on current or past information.

Evidence-Based Management

The systematic use of empirical data and scientific findings to inform managerial decision-making and organizational practices.

Human Relations Movement

A critique of classical management and bureaucracy that advocated management styles that were more participative and oriented toward employee needs.

Bureaucracy

Max Weber’s ideal type of organization that included a strict chain of command, detailed rules, high specialization, centralized power, and selection and promotion based on technical competence.