Which of the Following Entries Will Be Necessary to Close

question 30

Multiple Choice

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

• A)debit Insurance Expense and credit Income Summary
• B)debit Insurance Expense and credit Owner,Capital
• C)debit Owner,Capital and credit Insurance Expense
• D)debit Income Summary and credit Insurance Expense

---

Definitions:

Stock Pricing Models

are theoretical models used to estimate the fair value of a stock based on various factors including dividends, earnings, and growth rates.

Future Cash Flows

Projected cash earnings or expenditures expected to be realized by a business over upcoming periods, crucial for valuation and financial planning.

Prospectus

A formal legal document that provides details about an investment offering for sale to the public, typically containing information about the company's operations, financials, and management.

IPO Stock

Securities of a private company that are made available to the public for the first time through an initial public offering.