Which Account Has a Balance Equal to Net Income Immediately

question 161

Multiple Choice

Which account has a balance equal to net income immediately before it is closed?

• A) The Income summary account
• B) The Drawing account
• C) The Net Income account
• D) The Capital account

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Definitions:

Novice Players

Individuals who are beginners or have little experience in a particular activity or field.

Mental Set

is a tendency to approach situations in a certain way because that method worked in the past.

Well-defined Problem

A problem that has clear specifications of the start state, goal state, and the processes for reaching the goal.

Ill-defined Problem

A problem lacking clear objectives, constraints, and/or possible solutions, often requiring creative thinking for resolution.