Each of the Following Accounts Is Closed to Income Summary

question 53

Multiple Choice

Each of the following accounts is closed to Income Summary except

• A) Expenses.
• B) Dividends.
• C) Revenues.
• D) All of these are closed to Income Summary.

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Definitions:

Present Value

The value, as of now, of a forthcoming amount of money or cash flows over time, determined using a designated rate of return.

Maturity Value

The amount of money that will be paid out or received at the maturity of an investment, loan, or financial instrument.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, offering a snapshot of its financial condition.

Operating Cycle

A measure of the time span between the purchase of inventory and the collection of cash from accounts receivable, highlighting the time taken for a business to turn its inventory into cash.