When the Balance of the Income Summary Account Is a Debit

question 105

Multiple Choice

When the balance of the Income Summary account is a debit, the entry to close this account is:

• A) debit Income Summary; credit Withdrawals.
• B) debit Income Summary; credit Revenue.
• C) debit Capital; credit Income Summary.
• D) debit Income Summary; credit Capital.

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Definitions:

Work In Process

Items or tasks that are in the stages of production but are not yet completed; also referred to as work in progress.

PERT Event

An activity or milestone within the Program Evaluation and Review Technique, which is a project management tool used to schedule, organize, and coordinate tasks within a project.

Program Evaluation And Review Technique (PERT)

A project management tool used to schedule, organize, and coordinate tasks within a project.

Microsoft

A global technology company known for its software products, including the Windows operating system, Office productivity suite, and cloud computing services.