The Closing Entry for Utilities Expense Would Include

question 111

Multiple Choice

The closing entry for utilities expense would include:

• A) a debit to Utilities Expense and a credit to Retained Earnings
• B) a debit to net income and a credit to Utilities Expense
• C) a debit to Utilities Expense and a credit to net income
• D) a debit to Retained Earnings and a credit to Utilities Expense

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Definitions:

Break-even Point

The point at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as material or labor costs related to production levels.

Budgeted Salary

A predetermined amount of money allocated for salaries over a specific period, used for planning and controlling payroll expenses.

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.