As a Result of Closing Entries Which of the Following

question 17

Multiple Choice

As a result of closing entries which of the following is true?

• A)Cash is increased.
• B)Retained earning is increased by the amount of income earned during the year.
• C)Total assets are increased by the amount of income earned during the year.
• D)Liabilities are decreased by the amount of income earned during the year.

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Definitions:

Life Insurance Policy

A contract with an insurer that pays a designated beneficiary a sum of money upon the death of the insured person.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, issued by banks to depositors.

United Way

A nonprofit organization that works worldwide, helping communities by funding partner organizations to support various social causes.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party.