Which of the Following Is the Correct Closing Entry for a Profit

question 9

Multiple Choice

Which of the following is the correct closing entry for a profit of $78 400?

• A) DR Profit or loss summary account $78 400; CR Owner's capital account $78 400
• B) DR Owner's capital account $78 400; CR Profit or loss summary account $78 400
• C) DR Owner's capital account $78 400; CR Bank $78 400
• D) No closing entry is required

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Definitions:

World War I

World War I, also known as the First World War or the Great War, was a global conflict that took place from 1914 to 1918, principally fought between the Allies and the Central Powers, marked by trench warfare and the extensive use of new military technologies.

Prohibition

The legal prevention of the manufacture, sale, and transportation of alcoholic beverages in the United States from 1920 to 1933 under the 18th Amendment.

Corruption

The abuse of entrusted power for private gain, often undermining democracy and good governance.

Speakeasies

Illicit establishments that sold alcoholic beverages during the Prohibition era in the United States.