The Income Statement for the Year 2022 of Bugati Co

question 11

Multiple Choice

The income statement for the year 2022 of Bugati Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$73,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 43,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 11,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 3,500 \\\text { Insurance Expense } & 4,000 \\\text { Total expenses }&&79,500\\\text { Net income (loss) }&&\$(6,500) \end{array}$ The entry to close Income Summary to Owner's Capital includes

• A) a debit to Revenue for $73,000.
• B) credits to Expenses totalling $79,500.
• C) a credit to Income Summary for $6,500.
• D) a credit to Owner's Capital for $6,500.

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Definitions:

Time Frame

A period during which a sequence of events or an action takes place or is completed.

Co-occurring Psychiatric Disorder(s)

The presence of two or more psychiatric disorders in an individual at the same time, often requiring integrated treatment.

Secondary Substance Abuse Model

A theory suggesting that substance abuse may develop due to the influence of external factors such as environmental stressors, rather than primary addiction alone.

Early Remission

A phase in the treatment of an illness where symptoms are reducing or disappearing, but the complete recovery criteria are not yet fully met.