The Entry to Close the Withdrawal Account Was Entered in Reverse-The

question 48

Multiple Choice

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. The result of this error is that:

• A) before closing it, Income Summary will have a credit balance.
• B) before closing it, Income Summary will have a debit balance.
• C) the end of period capital will be understated.
• D) the end of period capital will be overstated.

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Definitions:

John Glenn

An American astronaut and politician who was the first American to orbit the Earth.

Senator

A member of a senate, which is a legislative body in various countries.

Correlated

Describes two or more variables when a change in one variable is associated with a change in another, implying a statistical relationship but not causation.

Causally Related

The relationship between two events where one event is understood to be a direct consequence of the other.