The Income Statement for the Month of June, 2011 of Taylor

question 52

Multiple Choice

The income statement for the month of June, 2011 of Taylor Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&£7,000\\\text { Expenses: }\\\text { Wages Expense } & £ 2,000 \\\text { Rent Expense } & 1,000 \\\text { Supplies Expense } & 300 \\\text { Advertising Expense } & 200 \\\text { Insurance Expense } & 100\\\text { Total expenses }&&3,600\\\text { Net income }&&£(3,400) \end{array}$
After the revenue and expense accounts have been closed, the balance in Income Summary will be

• A) £0.
• B) a debit balance of \( £ 3,400 \).
• C) a credit balance of \( £ 3,400 \).
• D) a credit balance of \( £ 7,000 \).

---

Definitions:

Bank Failures

Occur when a bank is unable to meet its obligations to depositors or creditors and is either closed or taken over by regulatory authorities.

Bank Management

The process of overseeing and running a bank's day-to-day operations and financial activities.

Barter

An exchange method where goods and services are directly traded for other goods and services without using a medium of exchange, like money.

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere, to encourage efficiency and competition.