The Entry to Close the Withdrawal Account Was Entered in Reverse-The

question 48

Multiple Choice

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. The result of this error is that:

• A) before closing it, Income Summary will have a credit balance.
• B) before closing it, Income Summary will have a debit balance.
• C) the end of period capital will be understated.
• D) the end of period capital will be overstated.

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Definitions:

Complements

Products or services that are used together, where the consumption or use of one increases the demand for the other.

Substitutes

Goods or services that can be used in place of each other, satisfying the same needs or desires.

Complements

Products or services that are often used together, such that demand for one increases the demand for the other.

Complements

Products or services that are commonly consumed in conjunction with one another, where a rising demand for one results in a corresponding increase in demand for the other.