The Entry to Close the Expense Account(s) Was Entered in Reverse-Income

question 15

Multiple Choice

The entry to close the expense account(s) was entered in reverse-Income Summary was credited and the expense account(s) was/were debited. This error would cause:

• A) assets to be overstated.
• B) liabilities to be overstated.
• C) the Capital account to be understated.
• D) the Capital account to be overstated.

---

Definitions:

Escalating Costs

The increasing financial expenditures associated with a product, service, or activity, often referring to healthcare expenses.

Technological Advances

Progress in technology that enhances capabilities, efficiency, or introduces new methods and tools.

Specialists

Medical doctors trained to diagnose and treat conditions in specific areas of medicine, offering expertise in fields such as cardiology, neurology, or surgery.

Profit-Orientation

A business approach focused on generating financial gain and maximizing profits.