After Preparing and Posting the Closing Entries to Close Revenues

question 16

Multiple Choice

After preparing and posting the closing entries to close revenues (and gains) and expenses (and losses) , the income summary account has a debit balance of $33,000. The entry to close the income summary account will include:

• A) a debit of $33,000 to owner withdrawals.
• B) a credit of $33,000 to owner withdrawals.
• C) a debit of $33,000 to income summary.
• D) a debit of $33,000 to owner capital.
• E) a credit of $33,000 to owner capital.

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Definitions:

Office Supplies

Consumable items used in an office environment for daily operations, such as paper, pens, and staplers.

Paid Cash

The action of disbursing money to settle a transaction or obligation.

Placed on Account

A term referring to a transaction being recorded on a company's books under an account receivable or payable, typically indicating a credit sale or purchase.

Accounting Equation

A foundational principle in accounting stating that assets equal liabilities plus equity, serving as the basis for the double-entry bookkeeping system.