The Most Efficient Way to Accomplish Closing Entries Is to

question 155

Multiple Choice

The most efficient way to accomplish closing entries is to

• A) credit the income summary account for each revenue account balance.
• B) debit the income summary account for each expense account balance.
• C) credit the owner's drawing balance directly to the income summary account.
• D) credit the income summary account for total revenues and debit the income summary account for total expenses.

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Definitions:

Corporate Raider

An investor who buys a large number of shares in a corporation with the aim to gain control of it and make changes to increase its value.

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.