Which of the Following Entries Records the Closing of Penny

question 80

Multiple Choice

Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period?

• A)Debit Penny Pincher, Drawing; credit Penny Pincher, Capital
• B)Debit Penny Pincher, Capital; credit Income Summary
• C)Debit Penny Pincher, Capital; credit Penny Pincher, Drawing
• D)Debit Income Summary; credit Penny Pincher, Drawing

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Definitions:

Production Function

An equation or graph that shows the maximum output a firm can produce with a given set of inputs, under the current technology.

Labor

The human effort, both physical and mental, used in the production of goods and services, a critical factor in determining productivity and economic output.

Output

Output refers to the total quantity of goods and services produced by an economy or business in a specific period.

Marginal Product

The supplementary yield achieved by the utilization of one additional unit of a variable factor, with all other resources remaining fixed.