Which of the Following Accounts Will Be Closed by Debiting

question 132

Multiple Choice

Which of the following accounts will be closed by debiting the Income Summary account?

• A) Owner, Capital
• B) Service Revenue
• C) Accounts Receivable
• D) Salaries Expense

Identify the principles behind economic structures, resource ownership, and coordination of economic activities.

Understand the shifts in production possibilities frontier due to changes in labor force size or technology.

Understand the characteristics of different economic systems.

Gain knowledge on the role of government intervention in various economic systems.

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Definitions:

Straight Life Insurance

A type of permanent life insurance where the insured pays a consistent premium throughout their lifetime, and the policy pays out a death benefit to the beneficiaries when the insured dies.

Loan Value

The maximum amount of money that a lender will provide to a borrower, often based on the value of the collateral pledged.

Cash Surrender Value

The amount of money an insurance policyholder can receive from the insurer by canceling the policy before it matures or the insured event occurs.

Outstanding

Exceptionally good or prominently distinguished; can also refer to something that is yet to be paid, completed, or resolved.