Which of the Following Entries Will Be Necessary to Close

question 159

Multiple Choice

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

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

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Definitions:

Demanding Task

A task that requires a high level of effort, skill, or dedication to complete successfully.

Cheerful Encouragement

Providing support, confidence, or hope to someone in a friendly and happy manner.

Extra Money

Additional funds or income that exceed regular earnings or expected amounts.

Extra Hours

Additional time worked beyond the standard or scheduled working hours.