To Which of the Following Accounts Should the Balance in the Income

question 159

Multiple Choice

To which of the following accounts should the balance in the Income Summary account be closed?

• A) Dividends
• B) Net Income
• C) Retained Earnings
• D) Service Revenue

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Definitions:

Expected State

Refers to the predicted condition or status of an entity or economy based on current trends or models.

Unlever

The process of reducing or eliminating leverage (debt) within a company's capital structure.

Lend Out

The act of providing funds to another party with the expectation of being repaid, usually with interest.

Debt Issue

The process by which a government, corporation, or other entity raises money through the sale of bonds, notes, or other forms of debt.