When There Is a Net Loss,the Entry to Close the Income

question 158

Multiple Choice

When there is a net loss,the entry to close the Income Summary account is debit

• A) Retained Earnings and credit Income Summary.
• B) Income Summary and credit Retained Earnings.
• C) Net Loss and credit Income Summary.
• D) Income Summary and credit Net Loss.

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Definitions:

Original Promisee

The individual or entity to whom a promise or commitment is initially made in a contractual agreement.

Breach of Contract

A situation where one or more parties fail to fulfill the terms agreed upon in a contract.

Injured Party

An individual or group that has suffered harm or damage due to another person's actions or a breach of contractual obligations.

Performance

Execution or completion of duties or tasks as required or agreed upon in a contract.