A Company Had Revenues of $75,000, Withdrawals of $10,000 and Expenses

question 18

Multiple Choice

A company had revenues of $75,000, withdrawals of $10,000 and expenses of $62,000 during an accounting period. Which of the following entries should not be journalized in the closing process?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Income Summary } & 13,000 & \\
• \hline \text { Capital } & & 13,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Capital } & 10,000 & \\
• \hline \text { Withdrawals } & & 10,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Revenues } & 75,000 & \\
• \hline \text { Income Summary } & & 75,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Income Summary } & 62,000 & \\
• \hline \text { Expenses } & & 62,000 \\
• \hline
• \end{array}\]
• E) All of these should be journalized in the closing process.

Explain the role of resource prices and costs of production in determining the slope of the short-run aggregate supply curve.

Analyze equilibrium conditions in the aggregate demand and aggregate supply model.

Understand the concept of market risk, including how beta measures the sensitivity of a stock's returns to market movements.

Comprehend the benefits of diversification in reducing investment risk.

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Definitions:

Receiving Report

A document that records the details of goods received by a business, often used to verify shipments and to match with purchase orders.

Vendor's Invoice

An itemized bill provided by a supplier indicating the products or services provided, their quantities, and prices.

Inventory System

A method or software used by organizations to track inventory levels, orders, sales, and deliveries.

Physical Inventory

A process where a business counts its entire inventory by hand at a specific point in time to verify stock quantities.