After Posting the Entries to Close All Revenue and Expense

question 335

True/False

After posting the entries to close all revenue and expense accounts,Marker Company's Income Summary account has a credit balance of $6,000,and its Dividends account has a debit balance of $2,500.These balances indicate that net income for the current accounting period amounted to $3,500.

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Definitions:

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, as per accepted accounting principles.

Units

Basic quantities or measurements, used as standards for expressing and comparing quantities.

Accounting Profit

The net income for a company after all expenses have been subtracted from total revenue, according to standard accounting practices.

Explicit Costs

Direct, out-of-pocket expenses incurred in the operation of a business or the execution of a transaction.