Which of These Accounts Is Closed to the Profit and Loss

question 13

Multiple Choice

Which of these accounts is closed to the profit and loss summary account?

• A)GST outlays
• B)Depreciation expense
• C)Owner's drawings
• D)Prepaid insurance

Learn the sequential steps in a bankruptcy case from filing to debt discharge.

Identify the differences between various chapters under the U.S. Bankruptcy Code.

Recognize the roles and powers of a bankruptcy trustee.

Understand the concept and application of an automatic stay.

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Definitions:

Liquidation Transactions

Transactions that occur when a company is in the process of closing and its assets are being sold off.

Capital Distributions

Capital distributions are payments made by a corporation to its shareholders from its capital base, as opposed to payments made from earnings or profit.

Liquidation Expenses

Costs associated with disbanding a company or partnership, including selling off assets, paying off creditors, and distributing any remaining assets to shareholders or partners.

Deficit Capital Account

A situation where a company's capital account balance is negative, indicating that liabilities exceed assets.