A Company Had $80,000 of Sales Revenue and $75,000 of Expenses

question 115

Multiple Choice

A company had $80,000 of Sales revenue and $75,000 of Expenses. Which of the following would be the first of three year-end closing entries?

• A) Debit Retained earnings $5,000 and credit Income summary $5,000.
• B) Debit Expenses $75,000 and credit Income summary $75,000.
• C) Debit Income summary $5,000 and credit Retained earnings $5,000.
• D) Debit Revenues $80,000 and credit Income summary $80,000.

---

Definitions:

Infected by Virus

A situation or state wherein a computer or biological system is infiltrated and affected by a malware or viral agent.

Preliminary Pages

The initial sections of a book or document, including the title page, table of contents, and sometimes a preface or acknowledgments.

Binary Numerals

A number system that uses only two digits, 0 and 1, as the basis for representing and computing data.

Arabic Numerals

A numeric system used worldwide, consisting of ten digits from 0 to 9, originally developed by mathematicians in the Arab world.