In the Closing Procedure, the Expense Account(s) Should Be Closed

question 29

Multiple Choice

In the closing procedure, the expense account(s) should be closed into the:

• A) Income Summary account.
• B) Net Income account.
• C) Expense Payable account.
• D) Drawings Account.

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Definitions:

Punitive Damages

Monetary compensation awarded to an injured party that exceeds simple compensation and is intended to punish the wrongdoer.

Malice

The intention or desire to do harm or evil, often used in legal contexts concerning wrongful acts.

Reckless Indifference

denotes a disregard or lack of concern for the consequences of one's actions, particularly where such actions pose a risk to others.

Tangible Employment Action

A significant change in employment status or benefits, such as occurs when an employee is fired, refused a promotion, or reassigned to a lesser position.