Net Income for the Current Period Is Closed

question 97

Multiple Choice

Net income for the current period is closed:

• A)to the owner's withdrawals account.
• B)to the owner's capital account.
• C)to the cash account.
• D)to the income summary account.

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Definitions:

Autarky

A situation where a country or economy is self-sufficient and does not engage in international trade or relies on imports.

Comparative Advantage

An economic principle that states a country or individual can produce a good or service at a lower opportunity cost than others.

Consumption Point

A specific point on a consumer’s budget constraint that shows the combination of different goods or services they will consume to maximize utility.

Wheat

A cereal grain considered a staple food in many parts of the world, used to make products like bread, pasta, and cereal, among others.