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

---

Definitions:

Napkin Plans

Informal or preliminary sketches or outlines of ideas, plans, or concepts typically noted in a quick and unrefined manner.

Prototyping

The process of creating an early model or sample of a product to test concepts or feasibility prior to full-scale production or development.

Experimentation

The process of conducting tests and trials to discover something unknown or to test a hypothesis.

Product

Anything tangible or intangible (such as a service) offered by the company.