Refer to the Information Above

question 55

Multiple Choice

Refer to the information above. The entry to close Salaries expense account will:

• A) Produce a zero balance in that account when posted.
• B) Include a credit to Income Summary.
• C) Include a debit to Salaries Expense.
• D) Include a credit to Capital Stock.

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Definitions:

Sale on Approval

A conditional sales agreement that allows the buyer to return the purchased goods if they don't meet specified requirements.

Option to Return

A contractual provision allowing a party to return a product or relinquish a service for reasons specified in the agreement.

Sale on Approval

A transaction agreement where the buyer has the right to return the item within a specified period if it does not meet their satisfaction.

Title

The formal right of ownership of property, which may include real estate or vehicles, among others.