The Entry to Close Revenue Accounts Involves

question 62

Multiple Choice

The entry to close revenue accounts involves

• A)a debit to Income Summary and credits to all the revenue accounts.
• B)debits to all the revenue accounts and a credit to Income Summary.
• C)debits to all the expense accounts and credits to all the revenue accounts.
• D)a debit to Retained Earnings and a credit to Income Summary.
• E)a debit to Income Summary and a credit to Retained Earnings.

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Definitions:

Tax on Sellers

A financial charge imposed by the government on sellers, which can shift the supply curve upward and affect market equilibrium.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Tax on Buyers

A financial charge imposed directly on purchasers, affecting the demand side by potentially reducing the quantity of goods or services bought.

Sellers Receive Less

A situation where suppliers earn less revenue than expected due to market factors such as decreased demand or increased competition.