Which of the Following Accounts Has a Balance Equal to Net

question 54

Multiple Choice

Which of the following accounts has a balance equal to Net Income immediately before it is closed?

• A)Income Summary
• B)Owner's Name, Withdrawals
• C)Net Income
• D)Owner's Name, Capital

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Definitions:

Replacement Buyer

An individual or entity that steps in to purchase a property or product when the original buyer is unable to complete the transaction.

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life, typically as materials for recycling or repurposing.

Stop Manufacturing

The act of halting the production or assembly of products in a manufacturing process.

Specific Performance

A legal remedy requiring a party to perform their specific duties under a contract, rather than paying damages.