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

question 142

Multiple Choice

A company had $80,000 of Sales revenue and $75,000 of Expenses. Which of the following would be the third of three year-end closing entries? (Assume no dividends were paid.)

• A) Debit Income summary $75,000 and credit Expenses $75,000.
• 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.

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Definitions:

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Complex organizational structures with strict rules, procedures, and hierarchies intended to manage large-scale administrative tasks efficiently.

Weber

Maximilian Karl Emil Weber, a German sociologist, philosopher, and political economist, known for his contributions to the understanding of social theory and social structure.