Which of the Following Accounts Is Used Only at the Close

question 53

Multiple Choice

Which of the following accounts is used only at the close of the accounting period to adjust the merchandise inventory account and summarize the temporary owner's equity accounts?

• A) Owner's Capital
• B) Income Summary
• C) Cost of Goods Sold
• D) Sales

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Definitions:

Claret

A red wine from Bordeaux, France, or a wine of similar character from elsewhere.

Demand Function

A mathematical representation of the relationship between the quantity demanded of a good and its determining factors, such as price and consumer income.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less expensive ones.

Income

Beneficial returns gained from employment or investment opportunities, typically on a scheduled basis.