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:

Fixed Asset Turnover

A efficiency ratio that indicates how well a company uses its fixed assets to generate sales.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Favorable Trend

A pattern or movement in financial or operational data that suggests positive performance or outcomes for a business.

Book Value

The net value of a company's assets found on its balance sheet, and is calculated by subtracting liabilities from the total assets.