When a Firm Has Net Income,which of the Following Is

question 93

Multiple Choice

When a firm has net income,which of the following is not an appropriate closing entry?

• A)Debit Sales,credit Income Summary
• B)Debit Retained Earnings,credit Income Summary
• C)Debit Income Summary,credit Insurance Expense
• D)Debit Income Summary,credit Depreciation Expense

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Definitions:

Interest Expense

This refers to the cost incurred by an entity for borrowed funds over a specific period of time.

Accrued Interest

Interest that has been earned but not yet received or recorded.

Accrued Interest

Represents the interest that has accumulated over a period of time but has not yet been paid.

Bond Interest Expense

The cost incurred by an issuer of bonds for the interest payments made to bondholders.