The First Step in the Closing Process Is To

question 32

Multiple Choice

The first step in the closing process is to:

• A) close all balances on the income statement debit column of the worksheet except Income Summary.
• B) transfer the balance from the Income Summary Account to the Capital Account.
• C) close all balances on the income statement credit column of the worksheet except Income Summary.
• D) transfer the balance of the Owner's Withdrawals Account to Capital.

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Definitions:

Production Resource Intensities

A term used to describe the amount of resources (labor, materials, energy) required to produce a specific good or service.

Goods and Services

The tangible products (goods) and intangible activities (services) that are produced and consumed by the economy.

Blocking Imports

Policy measures taken to restrict the importation of goods from foreign countries.

Tariff

A tax imposed by a government on goods and services imported from other countries, aiming to protect domestic industries from foreign competition.