All of the Following Are Contra Revenue Accounts Except

question 197

Multiple Choice

All of the following are contra revenue accounts except

• A) sales revenue.
• B) sales allowances.
• C) sales discounts.
• D) sales returns.

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Definitions:

Income Summary Account

The income summary account is used during the closing process to compile all income and expense transactions, facilitating the determination of a business's net income.

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.

Withdrawals

Amounts taken out from a business by its owners for personal use, often affecting the owner's capital account.

Ending Inventory

The worth of products on hand for sale at the conclusion of an accounting cycle, determined by adding the starting inventory to acquisitions and then subtracting the cost of goods sold.