Which of the Following Describes the Correct Sequence of Year-End

question 33

Multiple Choice

Which of the following describes the correct sequence of year-end closing entries?

• A)Close Revenues to Income summary;close Expenses to Income summary;close Income summary to Retained earnings.
• B)Close Expenses to Income summary;close Revenues to Income summary;close Income summary to Retained earnings.
• C)Close Revenues to Retained earnings;close Expenses to Retained earnings;close Income summary to Retained earnings.
• D)Close Revenues to Income summary;close Income summary to Retained earnings;close Expenses to Retained earnings.

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Definitions:

Prisoners' Dilemma Game

The Prisoners' Dilemma Game is a standard example of a game analyzed in game theory that shows why two rational individuals might not cooperate, even if it appears that it is in their best interest to do so.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep their strategies unchanged.

Maximin Strategy

A strategic choice aiming to ensure the best of the worst-case outcomes in a competitive or uncertain environment.

Pure Strategies

In game theory, strategies that involve making a specific choice or action with certainty, as opposed to mixed strategies where actions are chosen probabilistically.