In a Sole Proprietorship the Balance in the Income Summary

question 49

Multiple Choice

In a sole proprietorship the balance in the Income Summary account is closed to:

• A)Retained earnings.
• B)Capital.
• C)Drawing.
• D)Net Income.

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Definitions:

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping, indicating an inverse relationship between price and quantity demanded.

Price-inelastic

A characteristic of a good for which demand does not change significantly when its price changes.

Total Revenue

The overall amount of money received by a company for goods sold or services provided during a certain time period.