At the End of the Accounting Period,but Before the Closing

question 238

Multiple Choice

At the end of the accounting period,but before the closing entries have been recorded,Doug,the proprietor of Pepper's Cafe,has a debit of $12,250 in his drawing account and a credit of $63,400 in his capital account.If his capital account has a credit balance of $68,950 after the closing,what was his net income?

• A)$5,550
• B)$17,800
• C)$56,700
• D)$6,700

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Definitions:

Private Goods

Goods that are excludable and rival in consumption, meaning their use by one individual prevents use by another.

Government Spending

The total amount of money that a government expends on services, goods, and public projects.

Marginal Benefit

The additional benefit received from the consumption of one more unit of a good or service.

Marginal Cost

The additional cost incurred in producing one more unit of a product or service.