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

question 99

Multiple Choice

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&\$7,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 3,000 \\\text { Rent Expense } & 1,500 \\\text { Advertising Expense } & 800 \\\text { Supplies Expense } & 300 \\\text { Insurance Expense } & 100\\\text { Total expenses }&&5,700\\\text { Net income }&&\$1,300\end{array}$ After the revenue and expense accounts have been closed, the balance in Income Summary will be

• A) $0.
• B) a debit balance of $1,300.
• C) a credit balance of $1,300.
• D) a credit balance of $7,000.

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Definitions:

Seasonal Peaks

Periods of high demand or activity in a business or market that correspond with specific seasons or times of the year.

Revenue Management

The strategic use of pricing to increase the profitability of a business by selling the right product to the right customer at the right time for the right price.

Peak Period

The time frame during which demand for a service or product is at its highest.

Spoilage

The process by which products deteriorate in quality or become unfit for consumption or use over a period.