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

question 108

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 third closing entry would include which of the following line items?

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

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Definitions:

Dependent Variables

Variables in an experiment or model whose values are expected to change as a result of changes in other variables.

Indicators

Variables or metrics used to assess a specific aspect or condition within a study or analysis.

Durbin-Watson Statistic

A test statistic used to detect the presence of autocorrelation at lag 1 in the residuals from a regression analysis.

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated, making it difficult to distinguish their individual effects.