Use This Information from the Income Statement Columns of the Work

question 61

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 Laundry Revenue account would be

• A) Landscape Revenue 5,000 Income Summary 5,000
• B) Income Summary 5,000 Landscape Revenue 5,000
• C) Retained Earnings 5,000 Income Summary 5,000
• D) Retained Earnings 5,000 Landscape Revenue 5,000

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Definitions:

Economic Rent

Income earned from the use of a resource, above that which is economically or socially necessary, often associated with limited supply or monopoly conditions.

Federal Minimum Wage

The lowest legal hourly pay for many workers, as mandated by federal law.

Manufacturing

The process of turning raw materials into finished products through various methods, including human labor, machinery, and chemical processing.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, calculated by taking price changes for each item in the predetermined basket of goods and averaging them.