Which Accounts Are Affected in the Closing Process Under a Periodic

question 75

Multiple Choice

Which accounts are affected in the closing process under a periodic inventory system?

• A)Gross Margin and Cost of Goods Sold
• B)Cost of Goods Sold, Sales Returns and Allowances, and Sales Discounts
• C)Gross Margin, Sales Returns and Allowances, and Sales Discounts
• D)operating expenses, Sales Revenue, and Purchases

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Definitions:

Buyback

A financial transaction in which a company repurchases its own shares from the marketplace, reducing the amount of outstanding stock.

Pre-money Valuation

The valuation of a company prior to investment or financing, which determines how much of the company an investor can purchase for a specific amount of money.

VC

Venture Capital; financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Company

An organization or entity engaged in commercial, industrial, or professional activities.