In Preparing Closing Entries for a Merchandising Company the Income

question 17

Multiple Choice

In preparing closing entries for a merchandising company the Income Summary account will be credited for the balance of

• A) sales revenue.
• B) inventory.
• C) sales discounts.
• D) freight-out.

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Definitions:

Budget Deficit

The financial situation where an entity's expenses exceed its revenues over a specified period, leading to borrowing or debt.

Budget Surplus

An excess of tax revenue over government spending

Loanable Funds

The resources available for borrowing in the financial markets, comprising savings and any other available funds.

National Saving

The total amount of savings generated within a country, including both private savings by individuals and businesses, and public savings from government budgets.