The Income Statement for the Month of June, 2022 of Snap

question 35

Multiple Choice

The income statement for the month of June, 2022 of Snap Shot, Inc. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$7,300\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 3,000 \\\text { Rent Expense } & 1,300 \\\text { Advertising Expense } & 700 \\\text { Supplies Expense } & 200 \\\text { Insurance Expense } & 100 \\\text { Total expenses }&&5,300\\\text { Net income (loss) }&&\$2,000\end{array}$ The entry to close the revenue account includes a

• A) debit to Income Summary for $2,000.
• B) credit to Income Summary for $2,000.
• C) debit to Income Summary for $7,300.
• D) credit to Income Summary for $7,300.

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Definitions:

Sherman Act

An 1890 United States antitrust law that regulates competition among enterprises, aiming to prevent anti-competitive practices.

Rule Of Reason

A legal doctrine used in antitrust law that evaluates the pro-competitive and anti-competitive effects of business practices to determine their legality.

Economic Effect

The impact of financial activities or policies on the overall economy, including aspects like employment, inflation, and GDP growth.

Resale Restriction

A policy or legal condition that limits the ways in which a product can be resold by purchasers.