During the Closing Process

question 9

Multiple Choice

During the closing process:

• A)All income statement accounts are credited to income summary.
• B)All income statement accounts are debited to income summary.
• C)All revenue accounts are credited and expense accounts are debited.
• D)All revenue accounts are debited and expense accounts are credited.

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Definitions:

Equity Securities

Financial instruments that represent ownership in a company, such as stocks, entitling holders to dividends and capital gains.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Debt Securities

Financial instruments representing money borrowed that must be repaid, often with interest, including bonds, bills, and notes.

Fair Value

The estimated price at which an asset can be bought or sold in a current transaction between willing parties.