Use This End-Of-Period Spreadsheet to Answer the Questions That Follow

question 72

Multiple Choice

Use this end-of-period spreadsheet to answer the questions that follow.
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-The entry to close Income Summary would be

• A) debit Common Stock, $50,000; credit Income Summary, $50,000
• B) debit Income Summary, $155,000; credit Common Stock, $155,000
• C) debit Income Summary, $50,000; credit Retained Earnings, $50,000
• D) debit Common Stock, $9,000; credit Income Summary, $9,000

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Definitions:

Units

A basic measure of quantity in accounting or inventory management, representing a single item or element of output.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Per Unit

A term used to express data, costs, or values on a per single unit basis, facilitating easier comparison and calculation.

Account Classification

The process of organizing accounts into categories within the financial statements, based on their nature and function.