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:

Performance Expectation

The standards and goals set for employees or teams which outline what is expected from them in terms of their work performance.

Symbolic

Representing something else by association, resemblance, or convention, especially a material object representing something abstract.

Experiential Attributes

Characteristics of a product or service that can only be assessed after direct experience or consumption, such as taste or satisfaction.