The Income Statement for the Year 2016 of Bugati Co

question 179

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 Income Summary to Owner's Capital includes

• A) a debit to Revenue for $73000.
• B) credits to Expenses totalling $79500.
• C) a credit to Income Summary for $6500.
• D) a credit to Owner's Capital for $6500.

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Definitions:

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Income Gap

The disparity in the distribution of income within a population, typically between different socio-economic groups.

Neoliberalism

An economic and political ideology that emphasizes free-market capitalism, deregulation, and a reduction in government spending on social services.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, involving an increase in production, technological innovation, and infrastructure.