Martinville Company Earned Revenues of $20,000 and Incurred Expenses of $4,000.Martinville

question 115

Multiple Choice

Martinville Company earned revenues of $20,000 and incurred expenses of $4,000.Martinville withdrew $3,500 for personal use.What is the balance in the Income Summary account prior to closing net income or loss to the Martinville,Capital account?

• A) debit balance of $16,000
• B) debit balance of $12,500
• C) credit balance of $16,000
• D) credit balance of $20,000

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Definitions:

Cost of Overstocking

The expenses associated with holding excessive inventory, such as storage costs, insurance, and potential obsolescence.

Cost of Understocking

The financial losses and opportunity costs incurred from not having sufficient inventory to meet demand, including lost sales and customer dissatisfaction.

Product Availability

The extent to which a product can be purchased by consumers, influenced by inventory levels and supply chain efficiency.

Forecast Error

The gap between real results and what was forecasted by predictive models.