Which of the Following Is True About Closing the Books

question 115

Multiple Choice

Which of the following is true 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:

Disguised Unemployment

A situation where more workers are employed than is necessary for a given level of production, often due to lack of alternative employment options.

Subsistence Level

The minimum level of resources (income and goods) that is considered adequate to maintain the livelihood of an individual or household.

Thomas Robert Malthus

An English cleric and scholar, influential in the fields of political economy and demography, known for his theory on population growth.

Standard of Living

The standard of living refers to the degree of wealth, comfort, material goods, and necessities available to a person or community.