Dana and Emile Allocate 2/3 of the Profits and Losses

question 54

Multiple Choice

Dana and Emile allocate 2/3 of the profits and losses to Dana and 1/3 to Emile. The net income of the firm is $30,000. The journal entry to close the Income Summary will include:

• A)credit to Income Summary for $20,000.
• B)debit to Dana, Capital for $10,000.
• C)credit to Emile, Capital for $20,000.
• D)debit to Income Summary for $30,000.

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Definitions:

Bureaucratic Organization

A structured approach to administration and management, characterized by formal procedures, hierarchy, and a clear division of labor.

Productive

Being productive means achieving or producing a significant amount or result, maximizing output from given inputs or efforts.

Quantitative Management

An approach to management that focuses on mathematical models, statistics, and numerical techniques to solve organizational problems.

Mathematical Techniques

A collection of methods and practices used in solving mathematical problems, including algebraic formulas, calculus, and statistical models.