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

question 131

Multiple Choice

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

• 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:

Cognitive Disturbances

Intermittent disruptions or impairments in cognitive processes such as thinking, memory, attention, and perception.

Conduct Disorder

A mental health condition identified during childhood or adolescence, marked by ongoing aggressive and disorderly actions.

Discipline

A field of study or branch of knowledge, education, or training; also refers to the practice of training people to obey rules or a code of behavior.

Rational

Based on or in accordance with reason or logic, capable of reasoning or using reason in an orderly cogent fashion.