The Following Information Is from the Income Statement of the Campus

question 239

Multiple Choice

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

• A)credit to Income Summary for $3,550.
• B)debit to Income Summary for $3,550.
• C)debit to Salaries and Wages Expense for $2,450.
• D)credit to Retained Earnings for $3,550.

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Definitions:

Communications

The process of sending, receiving, and interpreting information through any number of channels.

Third Party

An entity not directly involved in a transaction or agreement but who may be affected by it or have interests in its outcome.

Liable

Being legally responsible for something, typically referring to the obligation to pay damages or compensation.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.