A Temporary Account in the Ledger Used for Closing Revenues

question 83

Multiple Choice

A temporary account in the ledger used for closing revenues and expenses is

• A) capital.
• B) withdrawals.
• C) income summary.
• D) net income.

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Definitions:

Cost System

A method or process used by a company to capture, measure, and allocate costs to products, services, or other cost objects.

Conversion Cost

The combined cost of direct labor and manufacturing overheads, which are necessary to transform raw materials into finished goods.

Equivalent Unit

represents a measure used in process costing, converting work-in-process into the number of finished units, facilitating cost allocation.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all items in inventory, taking into account the quantity of each item.