The Income Summary Account Is Credited in the Entry That

question 234

Multiple Choice

The Income Summary account is credited in the entry that closes

• A) the expense accounts.
• B) the revenue accounts.
• C) the Dividends account.
• D) net income.

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Definitions:

Revenues

The total income generated from normal business operations, before any expenses are deducted.

Profitability

Refers to a company's ability to generate earnings over its costs and expenses.

Controllable Margin

Controllable margin refers to the amount of profit or income that can be directly influenced by the management's decisions, usually excluding fixed costs and overhead.

Operating Assets

Assets that are used for day-to-day functioning of a business and generating revenue, such as inventory, machinery, and buildings.