Which of the Following Is True About Closing the Books

question 73

Multiple Choice

Which of the following is true about closing the books of a corporation?

• A)Expenses are closed to the Expense Summary account.
• B)Only revenues are closed to the Income Summary account.
• C)Revenues and expenses are closed to the Income Summary account.
• D)Revenues, expenses, and the dividends declared account are closed to the Income Summary account.

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Definitions:

Inequity

The lack of fairness or justice in situations, treatments, or conditions, often used in the context of social or economic disparities.

Excise Taxes

Taxes applied to the purchase of specific goods or activities, sometimes used to discourage consumption of certain items.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.