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

question 71

Multiple Choice

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

• A) Owner, Withdrawals
• B) Net Income
• C) Owner, Capital
• D) Service Revenue

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Definitions:

Mission Statement

A statement outlining the purpose and long-term objectives of the organization.

Human Resource Accounting

A method of measuring the cost and value of people in an organization, aiming to report the financial implications of employing human capital.

Managerial Tool

Instruments, techniques, or methodologies used by managers to improve decision-making, facilitate planning, or enhance productivity.

Salary Administration

The process of overseeing the compensation of employees, including the setting, distributing, and managing of salaries.