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Lostsunrise [7]
2 years ago
7

Which of the following is a true statement about closing the books of a corporation?A)Expenses are closed to the Expense Summary

account.B)Only revenues are closed to the Income Summary account.C)Revenues and expenses are closed to the Income Summary account.D)Revenues, expenses, and the Dividends account are closed to the Income Summary account.
Business
2 answers:
miss Akunina [59]2 years ago
8 0

Answer:

The correct answer is letter "C": Revenues and expenses are closed to the Income Summary account.

Explanation:

Closing the accounting books of a company implies leaving in zero (0) the revenues and expenses in the income summary account and then recording the net profit or losses of the period in the balance sheet. The assets, liabilities, and retained earnings accounts are not closed yet.

sergij07 [2.7K]2 years ago
4 0

Answer: The answer is C)Revenues and expenses are closed to the Income Summary account.  

Explanation:

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wlad13 [49]

Answer:

A. a computer programmer who starts her own software Company

Explanation:

Entrepreneurship is the process through which new businesses are started. An entrepreneur is a person who takes risks by committing their time and resources to start a business.

The computer programmer is the entrepreneur in this case. She is starting a new software business. Other than her computer skills, she will need to be creative and innovate to develop products that will appeal to customers. She will take all risks of her new business but also stand to enjoy its success.

7 0
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In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of
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Answer:

The correct option is 2. $50,200

Explanation:

Please see below the required journals for the transactions that occurred:

Debit Allowance for doubtful accounts             $31,800

Credit Accounts receivable                                $31,800

(<em>To record write-off of accounts receivable)</em>

Debit Accounts receivable                           $2,340,000

Credit Sales revenue                                    $2,340,000

<em>(To record credit sales during the year)</em>

Debit Cash                                                      $1,910,000

Credit Accounts receivable                           $1,910,000

<em>(To record collection on account)</em>

  • The effect of the above journals on allowance for doubtful account is a reduction. Since Dinty already assessed its allowance for doubtful account to be $82,000, bad debt expense required will be $50,200 ($82,000 - $31,800).
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Marginal thinking

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The economic foundation of marginal thinking requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost. And according to this principle, Marie´s benefits of the first three bananas is higher than its cost, but the fourth banana will provide less benefit than the third and this is less than it cost.

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