The Income Statement for the Month of June, 2018 of Camera

question 53

Multiple Choice

The income statement for the month of June, 2018 of Camera Obscura Enterprises contains the following information: The entry to close the expense accounts includes a

• A) debit to Income Summary for $1,300.
• B) credit to Rent Expense for $1,500.
• C) credit to Income Summary for $5,700.
• D) debit to Salaries and Wages Expense for $3,000.

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher best known for his theories on free market economies, depicted in "The Wealth of Nations."

Profit

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Mechanistic Organization

A highly structured, rigid, and bureaucratic form of organization based on centralized authority and a hierarchical line of command.

Leadership Role

A position of influence and responsibility where an individual guides and directs a group towards achieving a common goal.