Use the Following End-Of-Period Spreadsheet to Answer the Questions That

question 11

Multiple Choice

Use the following end-of-period spreadsheet to answer the questions that follow.
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-Use the end-of-period spreadsheet for Finley Company. The first closing entry would include a

• A) debit to C. Finley, Capital for $155,000
• B) debit to C. Finley, Capital for $50,000
• C) credit to C. Finley, Capital for $50,000
• D) credit to C. Finley, Capital for $155,000

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Definitions:

Optimistic Situation

A scenario or condition where outcomes are expected to be favorable or the best possible.

Pessimistic Situation

A scenario or outlook where the worst possible outcomes are anticipated, often used in risk management or scenario planning.

Accounting Basis

The method by which revenues and expenses are recorded and recognized in financial statements, such as cash basis or accrual basis.

Rate of Return

The profit or deficit incurred on an investment during a designated time, shown as a fraction of the initial investment amount.