When the Balance in the Income Summary Account Is a Debit

question 88

Multiple Choice

When the balance in the Income Summary account is a debit, the company has:

• A) incurred a net loss.
• B) incurred a net income.
• C) had more revenue than expenses.
• D) made an error in their closing entries.

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Definitions:

Sales Presentation

A detailed pitch or demonstration given to potential customers with the aim of promoting and selling a product or service.

Severity Rate

A measure used to gauge the seriousness of accidents or incidents by considering the number of lost work days relative to the number of incidents.

Work-Related Injuries

Injuries or illnesses that occur as a result of activities or conditions in the workplace.

On-The-Job Accident

An unexpected event in the workplace that results in personal injury or property damage.