Hot Tamale Company Had $120,000 of Revenues and $125,000 of Expenses

question 117

Multiple Choice

Hot Tamale Company had $120,000 of revenues and $125,000 of expenses. No dividends were paid. The second of the year-end closing entries should include which of the following line items?

• A) Credit Retained earnings $125,000.
• B) Debit Retained earnings $125,000.
• C) Debit Income summary $125,000.
• D) Credit Income summary $125,000.

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Definitions:

Disutility

The subjective discomfort or dissatisfaction experienced by individuals from work or undesirable activities.

Accident Damage

Physical harm or destruction caused to property or persons as a result of an unexpected and non-deliberate incident.

Decision Making

Decision making involves selecting a course of action from several alternatives, often based on judgment, research, and reasoning.