Which of the Following Is a True Statement About Closing

question 231

Multiple Choice

Which of the following is a true statement about closing the books of a proprietorship?

• A) Expenses are closed to the Expense Summary account.
• B) Only revenues are closed to the Income Summary account.
• C) Revenues and expenses are closed to the Income Summary account.
• D) Revenues expenses and the owner's drawings account are closed to the Income Summary account.

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Definitions:

Specifications

Detailed descriptions of the design, materials, and performance criteria that a product, service, or project must meet.

Disqualifying Suppliers

The process of removing vendors from consideration for contracts due to failure to meet specified criteria or standards.

Competitive Advantage

An attribute or set of attributes that allows an organization to outperform its competitors.

Operational Efficiency

The ability of an organization to minimize input and expenditure while maximizing output, thereby optimizing performance.