Which of the Following Accounts Has a Balance Equal to Net

question 118

Multiple Choice

Which of the following accounts has a balance equal to Net Income immediately before it is closed?

• A)Income Summary
• B)Dividends
• C)Net Income
• D)Retained Earnings

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Definitions:

Sales Returns and Allowances

A reduction in sales revenue due to the return of or allowances for unsatisfactory goods.

Revenue Account

An account that tracks the income a company generates from its business activities, excluding expenses.

Asset

A valuable economic entity held or overseen by an individual, business, or state, expected to bring about future advantage.