Which Statement Is Incorrect

question 204

Multiple Choice

Which statement is incorrect?

• A)The sales revenue account is used to record the sales of goods held for resale to customers.
• B)Sales discounts are recorded as debits to the sales revenue account.
• C)The sales revenue account is a revenue account.
• D)The sales revenue account has a normal credit balance and is closed at the end of the accounting period.

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Definitions:

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services.

External Cost

Uncompensated costs that individuals or firms impose on others outside of market transactions, often associated with pollution.

Pollution Tax

A financial charge imposed on the emission of pollutants, intended to motivate reductions in harmful environmental discharges.

Unit of Production

A single complete item or a specified amount of a commodity produced.