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zimovet [89]
3 years ago
5

Review and complete the following statement regarding the Income Summary account.

Business
1 answer:
torisob [31]3 years ago
8 0

Answer:

Revenues are Credited, Expenses are Debited and the difference of Revenue and Expenses is credited in the Retained Earnings.

Explanation:

The revenue and retained earnings account are credit in nature and expenses are debit in nature.

This can be Explained from the following equation:

Closing Equity = Opening Equity + (Revenue - Expenses)

Closing Equity - Opening Equity = (Revenue - Expenses)

Earnings Retained by the Company = (Revenue - Expenses)

So the difference of the revenues and expenses goes to retained earnings. If the answer of the difference is positive then the retained earnings are credited otherwise it is credited. So as I said that revenues are credit in nature so if their is profit (credit is in access of debit or in other words revenues are in excess of expenses) then the retained earnings will be credited and if their is a loss then the retained earnings account will be debited.

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3 years ago
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Jack is buying the Padillas' home. He makes his offer and in his terms states, he wants all the window treatments, refrigerator,
gogolik [260]

Answer:

c) Counteroffer

Explanation:

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3 years ago
You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an
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Answer:

Neither

Explanation:

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Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

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Answer:

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