When Closing the Income Summary Account When There Is a Net

question 73

Multiple Choice

When closing the Income Summary account when there is a net income

• A) Capital would increase.
• B) Capital would decrease.
• C) Capital would remain the same.
• D) None of these are correct.

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Definitions:

Federal Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a fiscal year.

Interest Rates

The charges levied by lenders on borrowers for the privilege of using the lender's money, expressed as a proportion of the borrowed amount per unit of time.

U.S. Dollar

The official currency of the United States, which serves as a major reserve currency and is used in many international transactions.

Federal Budget Surplus

A financial situation where the government's revenue exceeds its expenditures within a fiscal year.