Use This End-Of-Period Spreadsheet to Answer the Questions That Follow

question 72

Multiple Choice

Use this end-of-period spreadsheet to answer the questions that follow.
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-The entry to close Income Summary would be

• A) debit Common Stock, $50,000; credit Income Summary, $50,000
• B) debit Income Summary, $155,000; credit Common Stock, $155,000
• C) debit Income Summary, $50,000; credit Retained Earnings, $50,000
• D) debit Common Stock, $9,000; credit Income Summary, $9,000

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Definitions:

Natural Rate

The natural rate often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable inflation rate over time.

Phillips Curves

A graphical representation indicating the inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period.

High Inflation

A situation where there is a sustained, rapid increase in the general price level of goods and services in an economy over a period, eroding purchasing power.