Homeyer Corporation Has Provided the Following Data for Its Two

question 14

Multiple Choice

Homeyer Corporation has provided the following data for its two most recent years of operation:
The net operating income (loss) under absorption costing in Year 1 is closest to:

• A) $102,000
• B) $30,000
• C) $176,000
• D) $208,000

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts to prepare the books for the next period.

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but not yet been recorded.

Unadjusted Trial Balance

A listing of all the accounts and their balances from the ledger, before any adjusting entries are made for preparing financial statements.

End-of-period Spreadsheets

Summarizing documents prepared at the end of an accounting period that compile balances from ledgers for financial reporting.