Bob and Bill Allocate 2/3 of the Profits and Losses

question 160

Multiple Choice

Bob and Bill allocate 2/3 of the profits and losses to Bob and 1/3 to Bill. 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 Bob, Capital for $10,000.
• C)credit to Bob, Capital for $20,000.
• D)credit to Income Summary for $30,000.

---

Definitions:

Cluster Sampling

A statistical method where the population is divided into groups, or clusters, and a sample of these groups is selected to represent the whole population.

Population Subgroups

Distinct categories or sectors within a population, separated based on specific criteria or characteristics for analysis.

Census

The complete enumeration or counting of a population or group at a point in time, often used in demographics and market research.

Managerial Perspective

An approach or viewpoint that focuses on strategies, decision-making, and actions from the standpoint of someone in a management role.