Which of the Following Is a True Statement About Closing

question 24

Multiple Choice

Which of the following is a true statement about closing the books of a corporation?

• A) Expenses are closed to the Expense Summary account.
• B) Only revenues are closed to the Income Summary account.
• C) Revenues and expenses are closed to the Income Summary account.
• D) Revenues, expenses, and the dividends account are closed to the Income Summary account.

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Definitions:

Self-sufficiency

The ability of an individual, household, or nation to meet all their needs without external assistance.

Opportunity Cost

The price paid for not choosing the next most favorable opportunity when making a choice or decision.

Knitting Scarves

The process of creating a piece of fabric, specifically a scarf, by interlocking yarn or thread with needles.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.