After Closing the Revenue and Expense Accounts,Income Summary Showed a Debit

question 24

Multiple Choice

After closing the revenue and expense accounts,Income Summary showed a debit balance of $2,000.Which of the following statements is true?

• A)The company had a net loss of $2,000.
• B)The company had a net income of $2,000.
• C)The company's cash increased $2,000.
• D)None of these answers are correct.

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Definitions:

Cognitive Abilities

Mental capabilities that include thinking, reasoning, problem-solving, and planning.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Behavior

The actions or reactions of an individual, in response to external or internal stimuli, observable by others.

Cognitive

Relating to the mental processes involved in acquiring knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.