Which of the Following Accounts Would Be Closed at the End

question 121

Multiple Choice

Which of the following accounts would be closed at the end of the accounting period with a debit?

• A)Sales Discounts.
• B)Sales Returns and Allowances.
• C)Cost of Goods Sold.
• D)Operating Expenses.
• E)Sales.

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Definitions:

Profit-maximizing Output

The level of output at which a company achieves the highest possible profit, where marginal cost equals marginal revenue.

Marginal Cost

The cost escalation resulting from the creation of one additional unit of a good or service.

Lawn-mowing

The process of cutting the grass in a yard or field to a uniform length, typically using a manual, electric, or gas-powered lawn mower.

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period.