Which of the Following Accounts Is Not Closed to Income

question 118

Multiple Choice

Which of the following accounts is not closed to Income Summary?

• A) Cost of Goods Sold
• B) Inventory
• C) Sales Revenue
• D) Sales Discounts

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Definitions:

Discount Rate

In discounted cash flow analysis, it's the rate of interest used to determine today's value of cash flows expected in the future.

Certainty Equivalent Approach

A method used in capital budgeting and investment finance that adjusts the future cash flows of risky investments to reflect their riskiness as compared to a certain cash flow.

Computer Simulation

Computer Simulation is a digital simulation of a real-world process or system over time, using computer software to study the behavior under various conditions.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.