Which of the Following Accounts Will Be Closed to the Retained

question 194

Multiple Choice

Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?

• A) Rent Expense
• B) Fees Earned
• C) Income Summary
• D) Depreciation Expense

---

Definitions:

Inventory Errors

Mistakes made in counting or valuing inventory that can affect financial statements, including profit, loss, and tax liabilities.

Ending Inventory

The worth of merchandise ready for sale when an accounting period concludes, determined by adding the initial inventory to acquisitions and subtracting the cost of goods sold.

Retail Method

An inventory valuation method based on the retail price of goods, used primarily in the retail sector.

Estimated Inventory

is an approximation of the quantity or value of stock on hand, often used for accounting or planning purposes when an actual count is not feasible.