Which Statement Relating to the Profit or Loss Summary Account

question 13

Multiple Choice

Which statement relating to the profit or loss summary account is incorrect?

• A) The balance in the profit or loss summary account is transferred to the owner's capital account.
• B) The profit or loss summary account is a permanent account.
• C) The profit or loss summary account is established to summarise the balances in the income and expense accounts.
• D) The balance in each income and expense account is transferred to the profit or loss summary account.

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Definitions:

Epinephrine

This entity, known as adrenaline, serves simultaneously as a hormone and a neurotransmitter, activating the body's defense mechanism known as fight-or-flight.

Norepinephrine

A neurotransmitter and hormone important in the body's fight or flight response, affecting heart rate, blood flow, and blood pressure among other functions.

Facially Expressed

Refers to the communication of emotions, intentions, or social information through facial movements and expressions.

Nose Wrinkled

A facial expression where the nose is scrunched up, often indicating disgust, displeasure, or skepticism.