How Is Income Summary Closed If the Company Had a Net

question 98

Multiple Choice

How is Income Summary closed if the company had a net loss?

• A) Credit Income Summary; debit Capital
• B) Debit Income Summary; credit Capital
• C) Debit Capital; credit Revenue
• D) Debit Withdrawals; credit Capital

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Definitions:

Dependent

An individual who relies on another, typically a family member, for financial support and can often be claimed for tax purposes.

Medical Coverage

Insurance protection that covers part or all of an individual's healthcare expenses.

Deductible

A deductible is the amount a policyholder must pay out-of-pocket before an insurance company will cover the remaining costs of a claim.

Major Surgery

A type of surgical procedure that involves significant bodily alterations, typically requiring anesthesia and a period of hospitalization.