The journal entry required to close the Drawing account is debit to Income Summary account and a credit to Drawing account.
Option a) is correct.
<h2>What is Income Summary account ?</h2>
An income summary is a temporary account that is used to net the closing entries from all the revenue and expense accounts at the conclusion of the accounting quarter. The final balance is regarded as a gain or loss. The company made a profit for that year if the net balance of the income summary is a credit balance, and a loss for that year if the net balance is a debit balance.
It lists all earnings and costs related to both operational and non-operating operations. It is also known as a revenue and expense summary as a result.
Learn more about Income summary Accounts here:
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Answer:
The correct answer is True.
Explanation:
Local advertising is of capital importance, especially for those who want to spread their business in specific cities or geographic regions.
With word of mouth advertising, you can surely get your business to reach different cities; but not at the speed that is required to recover the investment invested.
Businesses that have a local advertising plan will be able to bring their products and / or services to potential customers located in the target geographic area and increase their recognition as a local brand.
We are sure you have heard the following quotes; <em>"The best publicity is what satisfied customers do"</em> by Philip Kotler, and "What helps people helps business" by Leo Burnett
So why is local advertising important? Business owners have asked themselves this question for years, and the answer is really quite simple ... To get attention, direct traffic to your business and close sales.
Answer:
The amount of money created will be $1,250,000
Explanation:
In order to find the maximum amount of money that will be created in the banking system as a result of a deposit, we need to find the money multiplier.
Multiplier = 1/reserve ration = 1/0.2 = 5
The amount of money created = Multiplier *Initial deposit
Amount of money created = 5* 250,000
= 1,250,000
Answer:
Theory X.
Explanation:
In this scenario, Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as Theory X.
Douglas McGregor developed the theory x and y in the 1950s while working at the MIT Sloan school of management.
Theory X suggests that employees working in a particular organization dislike work, possess minimal ambition, and are generally not willing to take up responsibility.
Hence, with the Theory X it is very important and essential that these employees be supervised and rewarded externally with prizes and punishment should be used when they err.
Answer:
3.8 times
Explanation:
Inventory turnover indicates how many times a company sells and replaces its stock of goods during a particular period. The formula for inventory turnover ratio is the cost of goods sold divided by the average inventory for the same period.
$ 320,000 / 63,000 = 5.1 times in 2022
$283,500 / 32,000 = 8.9 times in 2023
Therefore inventory turnover increase as a result of the switch to the JIT system by 8.9 times - 5.1 times = 3.8 times
