The Final Closing Entry to Be Journalized Is Typically the Entry

question 118

Multiple Choice

The final closing entry to be journalized is typically the entry that closes the

• A) revenue accounts.
• B) owner's drawing account.
• C) owner's capital account.
• D) expense accounts.

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Definitions:

Unit Variable Cost

The cost of producing one unit of a product or service which varies with the level of production or sales.

Monthly Sales

The total value or volume of sales transactions that a business completes within a single month, often used to assess performance trends.

Net Operating Income

A company's income after operating expenses have been deducted but before deducting interest expenses and taxes.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much of sales revenue is available to cover fixed costs and generate profit.