The Income Statement Debit Column of the Worksheet Showed the Following

question 74

Multiple Choice

The income statement debit column of the worksheet showed the following expenses: $$\begin{array} { l | r } \hline \text { Supplies Expense } & \$ 600 \\\hline \text { Depreciation Expense } & 400 \\\hline \text { Salaries Expense } & 300 \\\hline\end{array}$$ The journal entry to close the expense accounts is:

• A) \[\begin{array}{l}
• \begin{array} { r | r | }
• \hline \text { Income Summary }& 1,300 \\
• \hline \text { Supplies Expense } & 600 \\
• \hline \text { Depreciation Expense } & 400 \\
• \hline \text { Salaries Expense } & 300 \\
• \hline
• \end{array}
• \end{array}\]
• B) \[\begin{array} { | c | l | }
• \hline \text { Income Summary} & 1,200 \\
• \hline \text { Capital} & 1,200 \\
• \hline
• \end{array}\]
• C) \(\begin{array}{|l|lcc|}
• \hline\text { Supplies Expense } &500 \\
• \hline \text { Depreciation Expense } &400\\
• \hline\text { Salaries Expense } &300\\
• \hline \quad\quad\quad\text { Income Summary } &\quad\quad\quad\quad1,200\\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|lcc|}
• \hline \text { Capital }& 1,200 \\
• \hline\quad\quad\quad\quad\text { Income Summary } &\quad\quad\quad\quad1,200\\
• \hline
• \end{array}\)

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Definitions:

Price-Quality Relationship

The perceived value of a product or service based on its price, often leading consumers to associate higher prices with higher quality.

Distribution Costs

Expenses related to the process of delivering products from production to the end consumer, including storage, inventory, and transportation costs.

Wholesalers

Individuals or businesses that buy large quantities of products from manufacturers or distributors and then sell smaller quantities to retailers.

Measurable

Capable of being quantified or expressed in numerical terms, allowing for assessment or comparison.