Which of the Following Entries Will Be Necessary to Close

question 75

Multiple Choice

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

• A)Debit Insurance Expense and credit Income Summary
• B)Debit Insurance Expense and credit Owner's Name, Capital
• C)Debit Owner's Name, Capital and credit Insurance Expense
• D)Debit Income Summary and credit Insurance Expense

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Definitions:

Object Constancy

The understanding that objects remain the same, irrespective of changes in viewing conditions such as angle, distance, or lighting.

Size

A dimension that determines how large or small something is.

Brightness

The perception of how luminous an object appears, influenced by the object’s illumination and its surroundings.

Linear Perspective

is a technique in drawing and painting that creates the illusion of depth on a flat surface, using converging lines to denote distance.