A company had revenues of $54,000 and expenses of $43,250 for the accounting period. The company paid $5,950 cash in dividends to the owner (sole shareholder). Which of the following entries could not be a closing entry? A. Debit Income Summary $10,750; credit Retained Earnings $10,750.
B. Debit Income Summary $54,000; credit Revenues $54,000.
C. Debit Revenues $54,000; credit Income Summary $54,000.
D. Debit Income Summary $43,250, credit Expenses $43,250.
E. Debit Retained Earnings $5,950, credit Dividends $5,950.

B. Debit Income Summary $54,000; credit Revenues $54,000.

Explanation:

The following entries can be a closing entry

a)To record closing entry of revenue account

Account                                                    Debit                          Credit

Revenues                                              $54,000

Income summary                                                                      $54,000

b)To record closing entry of expense account

Income summary                                  $43,250

Expenses                                                                                       $43,250

c)To record closing entry of income summary account

Income summary ( $54,000- $43,250)   $10,750

Retained earnings                                                                           $10,750

d) to record the closing entry of dividends account

Retained Earnings                                        $5,950

Dividend                                                                                               $5,950

The entry that  could not be a closing entry is B. Debit Income Summary $54,000; credit Revenues $54,000 because income summary account should be credited with the revenue amount of $54,000 as Revenue increases the  income of every business.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

3rd the reason why is because of management and leadership