The balance in income summary

Assignment Help Financial Accounting

Reference no: EM131292053

1. The balance in Income Summary:

A) Should equal retained earnings.

B) Will always be equal to the increase in retained earnings.

C) Will equal net income less dividends.

D) Will equal net income or net loss.

2. A company using process costing completed and transferred 8,000 units of a product to finished goods. In addition to the transferred units, 4,000 additional units were in process 40% complete when the period ended. In computing average unit cost, how many equivalent units would be used?

A. 12,000

B. 6,400

C. 8,000

D. 9,600

Reference no: EM131292053

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