Use This Adjusted Trial Balance to Answer the Following Question

question 60

Multiple Choice

Use this adjusted trial balance to answer the following question. The entry to close the expense accounts includes a

• A) debit to Retained Earnings for $4,000.
• B) debit to Income Summary for $20,000.
• C) debit to Insurance Expense for $4,000.
• D) credit to Retained Earnings for $40,000.

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Definitions:

Transactive Memory

A system of collective memory where groups or partnerships share and delegate the responsibility of remembering different types of information.

Groupthink

A phenomenon that occurs within a group when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Brainstorming

A creative group problem-solving and idea-generating technique aiming to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.