Use the Following Account Balances from the Adjusted Trial Balance

question 9

Multiple Choice

Use the following account balances from the adjusted trial balance of ABC Consulting:

Select the correct closing entry that ABC Consulting would make to close the income summary account at the end of the accounting period.

• A)debit B. Conway, Capital $600 credit B. Conway, Drawing for $600.
• B)debit B. Conway, Capital $9,700 and credit Income Summary for $9,700.
• C)debit B. Conway, Capital $18,000 and credit Income Summary for $18,000.
• D)debit Income Summary $9,700 and credit B. Conway, Capital for $9,700.

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Definitions:

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains each of its possible values.

Relative Frequency

The ratio of the number of times a particular value appears in a dataset to the total number of observations.

Categorical Data

Data that can be divided into groups or categories that are not numerically ordered.

Relative Data

Data that is compared to a certain reference point or to other data in order to assess its value or importance in relative terms.