If telephone expenses for the year are $7900, made up of cash payments of $7400 and accrued telephone expense of $500 what is the amount of telephone expense that is closed to the profit and loss summary account?
A) Nil
B) $500
C) $7900
D) $8400

Question

Quizplus · Accepted Answer

The total telephone expense for the year is $7900, which includes both cash payments and accrued expenses. This total amount is what would be closed to the profit and loss summary account.

If Telephone Expenses for the Year Are $7900, Made Up