The Income Statement for the Year 2016 of Bugati Co

question 200

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 expense accounts includes a

• A) debit to Income Summary for $6500.
• B) credit to Income Summary for $6500.
• C) debit to Income Summary for $79500.
• D) debit to Utilities Expense for $3500.

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Definitions:

Hospitalization Costs

The expenses associated with a patient's stay and treatment in a hospital.

Alcoholics

are individuals who suffer from alcoholism, a chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.