Which of the Following Entries Will Be Necessary to Close

question 86

Multiple Choice

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

• A) debit Insurance Expense and credit Income Summary
• B) debit Insurance Expense and credit Common Stock
• C) debit Retained Earnings and credit Insurance Expense
• D) debit Income Summary and credit Insurance Expense

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Definitions:

Social Interest

A concept introduced by Alfred Adler, referring to an individual's attitude towards and awareness of being part of a community and the inclination to contribute positively to it.

Collective Unconscious

A concept introduced by Carl Jung that describes a segment of the unconscious mind formed from inherited memories and experiences, shared universally among humans.

Individual Psychology

A psychological framework which emphasizes understanding the uniqueness of each individual and how they strive for success and cope with feelings of inferiority.

Indivisible Whole

A concept referring to something that cannot be divided into smaller parts without losing its essential nature or function.