The Income Statement for the Month of June, 2010 of Ramirez

question 131

Multiple Choice

The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

• A) $0.
• B) a debit balance of $3,400.
• C) a credit balance of $3,400.
• D) a credit balance of $7,000.

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Definitions:

Adequacy

Adequacy refers to the suitability of something to meet the needs in its context or the sufficiency in quantity or quality to fulfill a specific requirement.

Consideration

Something of value exchanged between parties within a contract, serving as the reason or motive for entering into the agreement.

Adequacy

The sufficiency to meet the needs or requirements; often assesses whether something is enough in quantity or meets a certain standard.

Consideration

Something of value (such as money, services, or goods) exchanged between parties in a contract.