In Preparing Closing Entries

question 116

Multiple Choice

In preparing closing entries

• A) every revenue account will be credited.
• B) every expense account will be credited.
• C) the owner's capital account will be debited if there is profit for the period.
• D) the owner's drawings account will be debited.

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Definitions:

Refurbishment

The process of cleaning, decorating, and providing new equipment or facilities to make a building or item look new again.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity, allowing for more accurate budgeting in variable operating environments.

Machine-Hours

A measure of production time, where one machine-hour equals the operation of one machine for one hour.

Static Planning Budget

A budget based on a single level of activity, not adjusting for actual levels of activity experienced.