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

question 210

Multiple Choice

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

• A) debit to Income Summary for $1,300.
• B) credit to Income Summary for $1,300.
• C) debit to Income Summary for $7,000.
• D) credit to Income Summary for $7,000.

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Definitions:

Dividend Payout Ratio

A financial indicator showing the proportion of a company's profits distributed to its shareholders as dividends.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues. It's often referred to as the bottom line.

Capital Intensity Ratio

A metric that measures the amount of assets needed by a company to generate one dollar of revenue.

Operating Capacity

The maximum amount of work or output a company can produce in a set period under normal working conditions.