The Entry to Close Expense Accounts Involves

question 1

Multiple Choice

The entry to close expense accounts involves

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

Concentration Ratio

A measure indicating the market share of the largest firms in an industry, used to determine the market's level of competition.

Technological Opportunities

The potential for firms to develop innovations or improve processes due to advances in technology.

R&D Expenditures

Funds allocated by a company towards research and development efforts aimed at innovation and improving products or processes.

Productive Efficiency

A state where economy or industry can no longer produce additional amounts of a good without lowering the production level of another product.