Which of the Following Accounts Is Not Closed to Income

question 28

Multiple Choice

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

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

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Definitions:

Total Expenditures

The combined amount of money spent by an individual, organization, or government over a specific period of time.

Inelastic Demand

A market situation where the demand for a product does not significantly change in response to changes in price, often applicable to necessities or products with few substitutes.

Board of Regents

An administrative body that governs institutions of higher education, overseeing budgetary matters, academic policies, and major appointments.

Elastic Demand

A situation in which the quantity demanded of a good or service is highly responsive to changes in its price.