The Following Information Is from the Income Statement of the Campus

question 156

Multiple Choice

The following information is from the Income Statement of the Campus Laundry Service: The entry to close the Service Revenue account includes a:

• A)debit to Service Revenue for $6,500.
• B)credit to Service Revenue for $6,500.
• C)debit to Income Summary for $6,500.
• D)debit to Retained Earnings for $6,500.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market.

Supply and Demand

The basic economic principle that determines the price of goods and services in a market, based on the quantity available (supply) and the desire of consumers to purchase (demand).

Demand Curve

A visual model that illustrates the link between the cost of a commodity and the volume of demand from buyers at those costs.

Secondary Market

A marketplace where investors buy and sell securities, such as stocks and bonds, from other investors rather than from issuing companies directly.