After Preparing and Posting the Closing Entries for Revenues and Expenses,the

question 150

Multiple Choice

After preparing and posting the closing entries for revenues and expenses,the income summary account has a debit balance of $33,000.The entry to close the income summary account will be:

• A)Debit Dividends $33,000; credit Income Summary $33,000.
• B)Debit Income Summary $33,000; credit Dividends $33,000.
• C)Debit Income Summary $33,000; credit Retained earnings $33,000.
• D)Debit Retained earnings $33,000; credit Income Summary $33,000.
• E)Credit Retained earnings $33,000; debit Dividends $33,000.

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Definitions:

Economic Life

The expected period during which an asset remains useful to a particular entity or project, often affecting its depreciation schedules.

Business Entity

An organization established as a separate legal entity for the purposes of conducting business, such as a corporation, partnership, or sole proprietorship.

Time Periods

Specific intervals or durations used for accounting and reporting purposes, such as fiscal quarters or years.

Bank Loan

A sum of money lent by a bank to a borrower at an agreed interest rate.