Which of the Following Accounts Should Be Closed to Income

question 114

Multiple Choice

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

• A)Salaries Expense
• B)Fees Earned
• C)Utilities Expense
• D)All of the above are correct

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Fixed Costs

Fixed costs refer to expenses that do not change with the level of production or output over the short term, such as rent, salaries, and insurance premiums.

Sensitivity Analysis

A technique in financial modeling used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Variable Costs

Costs that vary directly with the level of production or volume of sales, such as materials and labor.