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quester [9]
3 years ago
12

If sales are $540,000, expenses are $440,000 and dividends are $50,000, what is the balance of income Summary prior to closing?

a. It will have a credit balance of $50,000. b. It will have a debit balance of $50,000. c. It will have a debit balance of $100,000. d. It will have a credit balance of $100,000.
Business
1 answer:
alexandr402 [8]3 years ago
7 0

Answer:

d. It will have a credit balance of $100,000.

Explanation:

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

So, the balance of income summary equals to

= Sales - expenses

= $540,000 - $440,000

= $100,000

The dividend should be deducted from the retained earning account. Hence, it will not be consider here

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Which of the following is not an example of how you can reduce the full
andrezito [222]

To reduce the cost of higher education, what should not be done is to get low grades, because they can sanction you and you will have to repeat some subjects.

<h3>What is higher education?</h3>

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<h3>What to do to reduce the value of higher education?</h3>

To reduce the value of higher education, some students access scholarships that allow them to reduce these costs. However, scholarships generally require them to have high grades and maintain a high level of academic performance.

Therefore, if we want to reduce these costs we must get high grades and maintain a high average. On the other hand, if our grades are low, we are going to increase costs because we are going to have to pay for additional classes or repeat some of them.

Learn more about higher education in: brainly.com/question/2500637

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