Which of the Following Statements Regarding the Effect of a Net

question 96

Multiple Choice

Which of the following statements regarding the effect of a net loss on the closing process is true?

• A) If a company has a net loss during the current accounting period, then the post -closing retained earnings will be smaller than the pre-closing retained earnings.
• B) When closing journal entries are prepared, contributed capital is debited if a company has a net loss.
• C) If a company has a net loss, the closing entry will include debits to the revenue accounts, credits to the expense accounts, and a credit to Retained earnings.
• D) If a company has a net loss, the amount of revenues being closed will be greater than the amount of expenses to be closed in the closing process.

Understand the physiological role of calcium regulation by the parathyroid and thyroid glands.

Describe the role of the adrenal cortex in regulating electrolyte and water balance.

Understand the structure and function of the sensory system in vertebrates.

Identify the specific roles of different parts of the eye and ear in the process of seeing and hearing.

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Definitions:

Net Income

The sum a company retains as profit after removing costs, expenses, and taxes from its total income.

Retained Earnings

The portion of a company's profits that is kept or retained within the business instead of being paid out to shareholders as dividends.

Stockholders' Equity

The stake in a company's assets left over after all debts have been cleared, frequently called shareholders' equity.

Revenues

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.