Use This Information from the Income Statement Columns of the Work

question 45

Multiple Choice

Use this information from the Income Statement columns of the work sheet of Oneida Landscape Service to answer the following question. The entry to close the expense accounts would be

• A) All Expenses 3,600 Retained Earnings 3,600
• B) All Expenses 3,600 Income Summary 3,600
• C) Income Summary 3,600 All Expenses 3,600
• D) Retained Earnings 3,600 All Expenses 3,600

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Definitions:

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the financial results as if the group were a single entity.

Investee

A party or entity in which an investor holds an interest, often through ownership of securities.

Common Stock

Equity ownership in a corporation, with rights to share in its profits and vote in company decisions.

Historical Cost Principle

An accounting principle that states assets should be recorded and reported at their original purchase cost.