If a Profit Has Been Earned for the Year, Before

question 23

Multiple Choice

If a profit has been earned for the year, before the closing entries, the profit or loss summary account has a___________________ balance.

• A) debit
• B) credit
• C) positive
• D) negative

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Definitions:

Cost-Per-Contact Basis

A method of advertising budget allocation that considers the cost of reaching an individual member of the target audience.

Indirectly Paid

A form of compensation or remuneration not made directly through monetary payments but through other benefits or services.

Wasted Coverage

Advertising or marketing effort that reaches an audience not interested in the product, resulting in inefficient spending.

Personal Selling

A sales approach involving direct interaction between a salesperson and a potential customer, usually aimed at persuading the customer to make a purchase.