The Income Summary Account Has a Credit Balance of $29,000

question 30

Multiple Choice

The Income Summary account has a credit balance of $29,000 after the revenue and expense accounts have been closed.Which of the following is to be credited to close the Income Summary account?

• A)Dividends
• B)Sales Revenue
• C)Cost of Goods Sold
• D)Owner,Capital

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Definitions:

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan.

After-Tax Discount Rate

After-tax discount rate is the rate used to determine the present value of future cash flows after considering the effects of taxes.

Working Capital

The difference between a company's current assets and current liabilities, indicating its operational liquidity.

Straight-Line Depreciation

A strategy for allocating the outlay of a tangible asset through its service duration in equivalent yearly installments.