The Income Summary Account Is Credited in the Entry That

question 69

Multiple Choice

The Income Summary account is credited in the entry that closes

• A) expense accounts.
• B) revenue accounts.
• C) the Dividends account.
• D) net income.

---

Definitions:

Economic Rationale

The reasoning behind economic behaviors and decisions, based on the principles of costs, benefits, and economic efficiency.

Overproduction

The situation where more goods or services are produced than are demanded, causing prices to drop or resources to be wasted.

European Community

The European Community was a regional organization aimed at integrating its member states economically and politically, serving as a precursor to the European Union.

Subsidies

Financial contributions provided by governments to support businesses, reduce the prices of commodities, or encourage activities beneficial to the public interest.