At the End of the Accounting Period, but Before Closing

question 57

Multiple Choice

At the end of the accounting period, but before closing entries are made, Harry, the proprietor of Harry's Bar and Grill, has a debit balance of $24,500 in his drawing account and a credit balance of $72,300 in his capital account. Which of the following statements is true?

• A) Harry's net income was $47,800.
• B) Harry will debit the drawing account for $24,500 and credit the capital account for $24,500.
• C) Harry will debit the capital account for $24,500 and credit the drawing account for $24,500.
• D) Harry's retained earnings account was $47,800.

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Definitions:

Institutionalized Socialization

The process by which individuals are taught and trained to internalize and follow the norms, values, and behaviors considered appropriate within a given society or organization.

Disjunctive Tactics

Strategies or methods that involve choosing alternatives that are not naturally connected or are divergent in approach.

Career-enhancing Benefits

Advantages or perks offered by employment that contribute to the professional growth and career advancement of the employee.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.