The Income Statement for the Year 2016 of Bugati Co

question 162

Multiple Choice

The income statement for the year 2016 of Bugati Co. contains the following information: $\begin{array}{lr}\text { Revenues } &&\$73,000 \\\text { Expenses: } & \\\text { Salaries and Wages Expense } & \$ 43,000 \\\text { Rent Expense } &12,000 \\\text { Advertising Expense } & 11,000 \\\text { Supplies Expense } &6,000 \\\text { Utilities Expense }& 3,500\\\text { Insurance Expense }&4,000 \\\quad \text { Total expenses } &&79,500 \\\text { Net income (loss) } &&\$(6,500) \end{array}$ The entry to close the revenue account includes a

• A) debit to Income Summary for $6500.
• B) credit to Income Summary for $6500.
• C) debit to Revenues for $73000.
• D) credit to Revenues for $73000.

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Definitions:

Phosphate Group

A functional group or radical comprising one phosphorus atom connected to four oxygen atoms, often involved in energy transfer in biological systems.

Five-Carbon Sugar

A type of sugar molecule that contains five carbon atoms, examples include ribose and deoxyribose, important in RNA and DNA structures.

Plasmids

Small, circular, double-stranded DNA molecules found in bacteria and some yeasts, separate from chromosomal DNA and often carry genes beneficial for survival.

Circular DNA

DNA that forms a closed-loop structure, characteristic of bacterial chromosomes and plasmids, facilitating gene transfer and replication.