The Closing Entry for Utilities Expense Would Include

question 105

Multiple Choice

The closing entry for utilities expense would include:

• A) a debit to Utilities Expense and a credit to net income
• B) a debit to Retained Earnings and a credit to Utilities Expense
• C) a debit to Utilities Expense and a credit to Retained Earnings
• D) a debit to net income and a credit to Utilities Expense

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Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs.

Salary Offer

The amount of money proposed to be paid to an employee for their services, typically expressed as an annual sum or hourly wage.

Average Product

The output per unit of input, such as labor or capital, used in production; a measure of productivity.

Workers

Individuals engaged in any form of work, whether in formal employment, self-employment, or voluntary activities, contributing labor to an economy.