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:

Greater Value

The higher worth or significance of something, often due to its usefulness, rarity, or quality.

New Small Business

A recently established company that operates on a smaller scale compared to larger corporations.

Customer Base

The group of customers who repeatedly purchase the goods or services of a business, serving as the main source of revenue for the company.

Intellectual Capital

The intangible assets of a business, including human knowledge, relationships, and organizational processes, that contribute to its competitive edge.