When There Is a Net Loss,the Entry to Close the Income

question 17

Multiple Choice

When there is a net loss,the entry to close the Income Summary account is

• A)debit Owner's Capital and credit Income Summary.
• B)debit Income Summary and credit Owner's Capital.
• C)debit Net Loss and credit Income Summary.
• D)debit Income Summary and credit Net Loss.

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Definitions:

Cross-Sectional

A research method that analyzes data from a population, or a representative subset, at a specific point in time to examine relationships between variables.

Basic

Referring to the fundamental, essential, or primary part of something that serves as the foundation.

Sense Of Trust

A feeling of confidence and security, often considered as the first stage of psychosocial development according to Erik Erikson.

Initiative

The ability to assess and initiate things independently; the power or opportunity to act before others do.