When the Balance in the Income Summary Account Is a Debit

question 88

Multiple Choice

When the balance in the Income Summary account is a debit, the company has:

• A) incurred a net loss.
• B) incurred a net income.
• C) had more revenue than expenses.
• D) made an error in their closing entries.

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Definitions:

Product and Service Mix

The combination of products and services a company offers to meet the needs of its customers.

Facilities Locations

The process of deciding the geographical placement of operations, factories, or offices of a business.

New Technologies

Recent innovations in technology that create new opportunities for improvement and development in various fields, including business, medicine, and engineering.

Business Strategy

A plan of action designed to achieve a long-term or overall aim in the competitive business environment.