Which of the Following Describes the Correct Sequence of Year-End

question 59

Multiple Choice

Which of the following describes the correct sequence of year-end closing entries?

• A) Close Revenues to Income summary; close Expenses to Income summary; close Income summary to Retained earnings.
• B) Close Expenses to Income summary; close Revenues to Income summary; close Income summary to Retained earnings.
• C) Close Revenues to Income summary; close Income summary to Retained earnings; close Expenses to Retained earnings.
• D) Close Revenues to Retained earnings; close Expenses to Retained earnings; close Income summary to Retained earnings.

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Definitions:

Switching Costs

These are the costs that a consumer incurs as a result of changing from one product, service, or supplier to another, including financial, time, and effort expenses.

Excessive Distribution

Excessive distribution occurs when a product is over-distributed or available in too many locations, potentially diluting its brand value and leading to inefficiencies.

Situation Analysis

An assessment process to understand the internal and external factors influencing an organization's performance, as part of strategic planning.

Analysis

The process of examining data or information to understand it better, typically to draw conclusions or make decisions.