Identify the Journal Entry Required to Correctly Record the Following

question 6

Multiple Choice

Identify the journal entry required to correctly record the following transaction. Income tax for the year estimated.

• A) Dr Income tax expense
• Cr Retained profits
• B) Dr Taxes payable
• Cr Income tax expense
• C) Dr Income tax expense
• Cr Taxes payable
• D) Dr Income tax expense
• Cr Cash at bank

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Definitions:

Competitors

Other businesses or entities that offer similar products or services within the same market and vie for the same customer base.

Loyalty Rates

Refers to the metric that measures the level of loyalty of customers to a brand or product, often calculated through repeat purchases or engagement.

Benefits-sought

Specific advantages or improvements customers are looking for in a product or service, which influence their purchasing decisions.

Service Support

Assistance and resources provided by a company to the users of its products or services.