Which of the Following Entries Will Be Necessary to Close

question 140

Multiple Choice

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

• A) debit Insurance Expense and credit Income Summary
• B) debit Insurance Expense and credit Owner, Capital
• C) debit Owner, Withdrawals and credit Insurance Expense
• D) debit Income Summary and credit Insurance Expense

---

Definitions:

Merit Pay

Merit pay is a compensation approach where employee performance directly influences the amount of pay increase or bonus they receive, aiming to reward excellence and motivate higher performance.

Individual-Level

Pertaining to or focusing on a single person as opposed to a group or collective.

Long-Term Basis

Refers to actions, plans, or relationships intended to last or be effective over an extended period of time.

Profit Sharing

Sharing profits with employees of an organization by the owners.