The Entry to Close the Income Summary Account May Include

question 63

Multiple Choice

The entry to close the Income Summary account may include

• A) a debit to Income Summary and a credit to the owner's capital account.
• B) a debit to Income Summary and a credit to Cash.
• C) a debit to Cash and a credit to Income Summary.
• D) a debit to Income Summary and a credit to the owner's drawing account.

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Definitions:

Stock Held

Shares of a company that are owned by an individual or entity, representing a portion of ownership in that company.

Initial Offering

The first sale or issuance of stock by a company to the public, typically referred to as an Initial Public Offering (IPO), marking a company's transition from private to public.

Sarbanes-Oxley Act

A law passed by the U.S. Congress in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Securities Act of 1933

United States federal law enacted as a result of the stock market crash of 1929, which requires securities sold to the public to be registered and regulated.