Telephone expenses for the year are $13 200. This amount is made up of cash payments of $12 500 and accrued telephone expenses of $700. What is the amount of telephone expenses that is closed to the profit and loss summary account?
A) Nil
B) $700
C) $12 500
D) $13 200

Question

Quizplus · Accepted Answer

The total telephone expenses for the year, which include both cash payments and accrued expenses, amount to $13,200. This total is what would be closed to the profit and loss summary account to reflect the full expense for the year.

Telephone Expenses for the Year Are $13 200