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:

Inverse Demand

A representation of demand in economics where the price of a good is expressed as a function of the quantity demanded.

Patent

A legal right granted to an inventor, giving them exclusive rights to manufacture, use, or sell their invention for a certain period of time.

Marginal Cost

The change in total cost that arises when the quantity produced increases by one unit.

Industry Output

The total quantity of goods or services produced by all firms within a particular industry.