Under a Perpetual Inventory System, Which Accounts Would Be Closed

question 162

Multiple Choice

Under a perpetual inventory system, which accounts would be closed to Income Summary with credits?

• A)Sales Returns and Allowances, Sales Revenue, and Inventory
• B)Sales Discounts, Sales Returns and Allowances, and Cost of Goods Sold
• C)Sales Revenue and Cost of Goods Sold
• D)Sales Returns and Allowances and Sales Revenue

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Definitions:

Environmental Protection Agency

A U.S. federal agency tasked with regulating and ensuring the protection of the environment and public health through oversight and enforcement of laws.

Subpoena

A legal document ordering someone to attend court as a witness or to produce documents as evidence.

Waste Disposal Company

A business specialized in the collection, transport, processing, or disposal of waste materials.

Internal Revenue Service

The U.S. government agency responsible for tax collection and tax law enforcement.