For the Year Ended December 31, a Company Had Revenues

question 86

Multiple Choice

For the year ended December 31, a company had revenues of $187,000 and expenses of $109,000. The owner withdrew $37,000 during the year. Which of the following entries could not be a closing entry?

• A) Debit Owner's Capital $37,000; credit Owner Withdrawals $37,000.
• B) Debit Income Summary $187,000; credit revenues $187,000.
• C) Debit revenues $187,000; credit Income Summary $187,000.
• D) Debit Income Summary $109,000, credit expenses $109,000.
• E) Debit Income Summary $78,000; credit Owner's, Capital $78,000.

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Definitions:

Long Term

Relating to or happening over a long period of time, often extending beyond a year.

Apologizing

Apologizing involves expressing regret or remorse for an action or statement that has caused harm or offense to another person, often with the intent to reconcile.

Business Messages

Communication conveyed through various formats, such as emails, letters, reports, or memos, intended for business purposes.

Indirect Approach

A strategy that employs subtlety and nuance in communication or action, avoiding direct confrontation or assertion.