If a Company Reports a Loss for the Year, the Closing

question 41

Multiple Choice

If a company reports a loss for the year, the closing entry will result in which of the following?

• A)A debit to retained earnings
• B)A debit to miscellaneous expense
• C)A credit to unearned revenue
• D)A debit to capital stock

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Definitions:

Written Acknowledgment

A document provided by a charity to a donor confirming a charitable contribution and detailing the value of the contribution and if any goods or services were provided in exchange.

Foreign Taxes

Taxes paid to a foreign government on income earned outside of the taxpayer's country of residence.

Schedule A

An itemized deductions form where taxpayers list eligible expenses to reduce their taxable income, including medical, taxes paid, interest, gifts to charity, and casualty losses.

Foreign Tax Credit

A permanent tax credit for income taxes handed over to an overseas authority as a consequence of foreign income tax deductions.