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.

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.

Dairy Farmer

A dairy farmer is an individual engaged in the management and care of cows for the production of milk and other dairy products.

Accounting Profits

The difference between total revenue and explicit costs of a business, calculated according to standard accounting practices.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product or service for which all sellers offer essentially the same good or service.