The Entry to Close Income Summary (Net Loss) Was Entered

question 77

Multiple Choice

The entry to close Income Summary (net loss) was entered in reverse-Income Summary was debited and Capital was credited. This error will cause

• A) Income Summary to have a credit balance.
• B) Income Summary to have a debit balance.
• C) the assets to be overstated.
• D) the liabilities to be overstated.

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Definitions:

Sample Mean

The average value computed from a subset (sample) of a population, used to estimate the population's mean.

Sample Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of sample data values.

Variance

A measure of the spread or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Risk

Exposure to uncertainty or potential financial loss; the chance that an investment's actual gains will differ from expected gains.