Which of the Following Entries Will Be Necessary to Close

question 27

Multiple Choice

Which of the following entries will be necessary to close the insurance expense account at the end of the year?

• A)Debit Capital and credit Insurance expense
• B)Debit Insurance expense and credit Income summary
• C)Debit Insurance expense and credit Capital
• D)Debit Income summary and credit Insurance expense

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Definitions:

R&D Spending

The amount of financial resources allocated by organizations on research and development activities aimed at creating new products or improving existing ones.

Interest-Rate Cost

The cost incurred by an individual or entity due to borrowing funds, determined by the rate of interest on the borrowed amount.

Marginal Utility

The additional enjoyment or gain achieved by consuming another unit of a good or service.

Total Utility

The total satisfaction or benefit derived from consuming a given quantity of goods or services.