Which of the Following Transactions Could Cause the Income Summary

question 69

Multiple Choice

Which of the following transactions could cause the Income Summary to be debited and Capital to be credited?

• A)The business earned a net loss for the period.
• B)The business earned a net income for the period.
• C)Closed the Owner's Capital account
• D)A credit balance in the Owner's Withdrawals account.

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Definitions:

Price of Y

Refers to the cost associated with acquiring or purchasing a specific good or service, denoted as "Y."

Budget Constraint

A financial limitation that defines the combination of goods and services an individual can afford to purchase given their income and the prices of those goods and services.

Income

The financial gain acquired by an individual or a company, which is typically calculated on an annual basis and obtained through work, investments, or business operations.

Nuts

Plant-derived kernels rich in fats, protein, and other nutrients, typically consumed raw or roasted.