In Order to Close a Revenue Account, the

question 148

Multiple Choice

In order to close a revenue account, the

• A) income summary account should be credited.
• B) income summary account should be debited.
• C) owner's drawings account should be credited.
• D) owner's drawings account should be debited.

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Definitions:

Solvency Ratio

A key metric used to measure a company's ability to meet its long-term debt obligations and financial liabilities.

Operating Success

A measure of the efficiency and profitability of a business's core activities, excluding the effects of financing and investments.

Enterprise

A business or company, especially when considered in terms of its entrepreneurial or innovative characteristics.

Vertical Analysis

A financial analysis method where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.