After the Revenue and Expense Accounts are closed, Income Summary has a credit balance of $80,000. What does this figure represent? A. NL of 80K B. NI of 80k C. Owner's Withdrawal of 80K D. Net increase in OE of 80K I have seen that the answer is NI in 80 K. But what is the difference between A and D? When you close out accounts, you are closing it out to the Income Summary that then zero the balance out and transfers the balance to OE/owner capital/Retained Earnings.
After the Revenue and Expense Accounts are closed, Income Summary has a credit balance of $80,000. What does this figure represent? A. NL of 80K B. NI of 80k C. Owner's Withdrawal of 80K D. Net increase in OE of 80K I have seen that the answer is NI in 80 K. But what is the difference between A and D? When you close out accounts, you are closing it out to the Income Summary that then zero the balance out and transfers the balance to OE/owner capital/Retained Earnings.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
After the Revenue and Expense Accounts are closed, Income Summary has a credit balance of $80,000. What does this figure represent?
A. NL of 80K
B. NI of 80k
C. Owner's Withdrawal of 80K
D. Net increase in OE of 80K
I have seen that the answer is NI in 80 K. But what is the difference between A and D? When you close out accounts, you are closing it out to the Income Summary that then zero the balance out and transfers the balance to OE/owner capital/
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