Which of the Following Accounts Has a Balance Equal to Net

question 167

Multiple Choice

Which of the following accounts has a balance equal to net income immediately before it is closed?

• A)Income Summary
• B)Dividends
• C)Net Income
• D)Retained Earnings

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Definitions:

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.

Absolute Advantage

The capability of a country, individual, company, or region to produce a good or provide a service more efficiently than its competitors when using the same amount of resources.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Alfalfa

A leguminous plant used primarily for feeding livestock, rich in nutrients and often grown as fodder.