What is the first step in the closing process?
a. Close the expense accounts to income summary.
b. Close the Drawing account into the Capital account.
c. Close the revenue account(s) into Income Summary.
d. Close the Income Summary account into the Capital account.
Question 2
Which of the following is not a condition that must be met for an item to be recorded as revenue?
a. Revenues must be earned.
b. The amount of the revenue must be measurable.
c. The revenue must be received in cash.
d. The costs of generating the revenue can be determined.
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