Emerald,Inc

Multiple Choice

Emerald,Inc. ,earned revenues of $69,000 and incurred expenses of $74,000.No dividends were declared.Which of the following statements is correct?

A) The entry to close Income Summary is the same regardless of a net income or a net loss.
B) Retained Earnings will be debited for $5,000 and Income Summary will be credited for $5,000.
C) The entries to close revenues and expenses will differ if there is a net loss.
D) The entry to close Income Summary requires a debit to the Income Summary account.