Revenues Total $20,200, Expenses Total $17,300, and the Owner's Withdrawals

question 124

Multiple Choice

Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $12,600. What is the balance in the income summary account prior to closing net income or net loss?

• A)$2,900 debit
• B)$9,700 debit
• C)$2,900 credit
• D)$9,700 credit

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Definitions:

Inflation Rate

The rise in the average price levels of goods and services within an economy over a given time frame.

Unemployment

The situation when individuals who are able and willing to work at current wage rates cannot find employment.

Inflation Expectations

The rate at which people expect the general price level of goods and services to rise in the future.

Housing and Financial Crisis

A period marked by severe disruptions in the availability of credit, widespread foreclosures, and plummeting housing prices, typically leading to a long-term economic downturn.