Problemas
Question 11 (1 point) When the total expenses are greater than the total revenues, a the Income Summary account has a credit balance. b the Income Summary account has a debit balance. C debits equal credits. d none of these.
Roztwór
Carlota
professionell · Tutor durante 6 años
4.5
(235 Votos)
Respuesta
'b'
Explicación
## Step 1The problem is about understanding the balance in the Income Summary account when total expenses are greater than total revenues. The Income Summary account is a temporary account used in the closing process to summarize the revenues and expenses for the period.## Step 2When total expenses are greater than total revenues, the Income Summary account will have a debit balance. This is because expenses are debits and revenues are credits. When expenses exceed revenues, the balance in the Income Summary account will be a debit balance.## Step 3Option a is incorrect because a credit balance in the Income Summary account would indicate that revenues exceed expenses, which is not the case here.## Step 4Option c is incorrect because debits do not necessarily equal credits in this scenario; expenses are greater than revenues.## Step 5Option d is incorrect because there is a clear answer among the options provided.