The entry to close Income Summary (net loss) was entered in reverse—Income Summary was debited and Capital was credited. This error will cause:
A) Income Summary to have a credit balance.
B) Income Summary to have a debit balance.
C) the assets to be overstated.
D) the liabilities to be understated.
Answer: B
Business
You might also like to view...
Ricardo is an accounting major. One of the big four accounting firms invited him to spend a week at its Baltimore, Maryland, location during the summer between his sophomore and junior years. Ricardo is completing a/n
A. job shadowing. B. externship. C. job tryout. D. internship
Business
Consumers will look at a point-of-purchase sign for a very brief period of time before moving on
Indicate whether the statement is true or false
Business