The Income Statement for the Year 2011 of Poole Co

question 43

Multiple Choice

The income statement for the year 2011 of Poole Co.contains the following information:
$\begin{array}{lr}\text { Revenues }&&\$70,000\\\text { Expenses: }\\\text { Wages Expense } & \$ 45,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 6,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 2,500 \\\text { Insurance Expense } & 2,000\\\text { Total expenses }&&73,500\\\text { Net income (loss) }&&\$(3,500) \end{array}$
The entry to close Income Summary to Retained Earnings includes

• A)a debit to Revenue for $70,000.
• B)credits to Expenses totalling $73,500.
• C)a credit to Income Summary for $3,500.
• D)a credit to Retained Earnings for $3,500.

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Definitions:

Harm To Persons

Any physical, psychological, or emotional injury inflicted upon an individual.

Walling-Off Procedures

Strategies used by organizations to prevent the exchange of sensitive information between departments or team members to avoid conflicts of interest.

Legal Professionals

Individuals working within the legal system, including lawyers, judges, and paralegals, who are trained to apply the law.

Opposing Counsel

The attorney representing the adversary in a legal dispute, engaged in litigation against one's client.