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:

US Dollar

The official currency of the United States, widely used as a benchmark and reserve currency worldwide.

Investments

Assets or items acquired with the goal of generating income or appreciation in value.

Exchange Rate

The value of one currency for the purpose of conversion to another, crucial for international trade and investments.

Widget Costs

An generic term used to discuss the production costs associated with creating a fictional or hypothetical product.