In Preparing Closing Entries

question 22

Multiple Choice

In preparing closing entries

• A) each revenue account will be credited.
• B) each expense account will be credited.
• C) the owner's capital account will be debited if there is net income for the period.
• D) the owner's drawings account will be debited.

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Definitions:

General Partners

are owners of a partnership who bear unlimited liability for the debts and obligations of the business.

Expelled

The act of being officially removed or barred from an institution or organization.

Overbilling

The practice of charging more than the agreed price or more than the services or goods provided are worth, often considered fraudulent or unethical.

Peanut Allergy

An allergic reaction that occurs when the body's immune system mistakenly identifies peanut proteins as harmful, leading to potentially severe symptoms.