The Income Statement for the Month of June, 2018 of Camera

question 88

Multiple Choice

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&\$7,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 3,000 \\\text { Rent Expense } & 1,500 \\\text { Advertising Expense } & 800 \\\text { Supplies Expense } & 300 \\\text { Insurance Expense } & 100\\\text { Total expenses }&&5,700\\\text { Net income }&&\$1,300\end{array}$ The entry to close the expense accounts includes a

• A) debit to Income Summary for $1,300.
• B) credit to Rent Expense for $1,500.
• C) credit to Income Summary for $5,700.
• D) debit to Salaries and Wages Expense for $3,000.

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Definitions:

Monopoly Level

A state or degree in which a single company or entity has exclusive control over a particular market or industry.

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others, to make it more attractive to a particular target market.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share.