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.

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Definitions:

Income Security Programs

Income security programs are government initiatives designed to ensure individuals have access to sufficient resources to meet basic needs, often through assistance like unemployment benefits, welfare, or social security.

Poverty Rates

The proportion of a population living below the poverty line, reflecting the percentage of individuals or households earning less than a certain income threshold necessary for basic living standards.

Poverty Rate

The proportion of a population living below the poverty line, defined by national or international standards, indicating economic hardship.

Canadian Seniors

Individuals in Canada who are considered to be of senior age, typically 65 years and older, often focusing on their social, economic, and health challenges.