Sales Revenues Were $20,000,Sales Returns and Allowances Were $300,Sales Discounts

question 59

Multiple Choice

Sales revenues were $20,000,Sales returns and allowances were $300,Sales discounts were $700,Cost of goods sold were $12,000,and all other expenses totaled $4,500.The first closing entry would include which of the following line items?

• A) Credit to Income summary of $19,000
• B) Credit to Income summary of $20,000
• C) Debit to Income summary of $2,500
• D) Debit to Income summary of $16,500

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Definitions:

Delegating Decision Making

The process by which authority to make certain decisions is transferred from one individual, often a manager, to another person or group.

Integration

The process of combining separate parts or elements into a whole, often used in the context of systems, businesses, and technologies to improve efficiency or coherence.

Common Goals

Objectives shared by members of a group that provide a common direction and unite their efforts.

Mechanistic Organization

A highly structured and formal organization, often characterized by centralized decision-making and a rigid hierarchy.