Which of the Following Could Not Possibly Be a Closing

question 153

Multiple Choice

Which of the following could not possibly be a closing entry?

• A) Debit Income Summary and credit Dividends.
• B) Debit Income Summary and credit Retained Earnings.
• C) Debit Retained Earnings and credit Dividends.
• D) Debit Retained Earnings and credit Income Summary.

---

Definitions:

Market Price

The present cost at which a product or service is available for purchase or sale in the market.

Economic Profit

The total revenue of a business minus its explicit and implicit costs; represents additional wealth created by a company over and above its costs.

Total Revenue

The overall amount of money generated from the sale of goods or services.

Total Cost

The total expenditure incurred by a firm to produce a specific amount of goods or services, including both fixed and variable costs.