Which of the Following Accounts Is Not Closed at the End

question 23

Multiple Choice

Which of the following accounts is not closed at the end of the accounting period?

• A) Factory Overhead
• B) Allowance for Bad Debts
• C) Cost of Goods Sold
• D) Income Summary

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Definitions:

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal amount of depreciation each year over the useful life of an asset.

Accumulated Depreciation

The total depreciation of a tangible asset up to a specific date, reducing its book value.

Other Income/Expense

Gains or losses from non-operational activities, distinct from the core business operations’ revenues and expenses.

Gain

The profit realized from the sale of assets or investments for more than their original purchase price.