The Following Information Is from the Income Statement of the Dirt

question 302

Multiple Choice

The following information is from the Income Statement of the Dirt Poor Laundry Service: The entry to close the Service Revenue account includes a:

• A) debit to Service Revenue for $5,500.
• B) credit to Service Revenue for $5,500.
• C) debit to Income Summary for $5,500.
• D) debit to Retained Earnings for $5,500.

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Definitions:

Court Order

A legal directive issued by a judge or court that requires a party to do or refrain from doing specific acts.

Debtor's Property

Assets owned by an individual or entity that owes money to creditors.

Final Judgment

The last court's decision resolving all issues between the parties in a legal action, after which the case is concluded.

Lienholder

A party that has a legal right or interest in a piece of property as security for a debt or charge.