Which of the Following Accounts Should Be Closed to Retained

question 233

Multiple Choice

Which of the following accounts should be closed to Retained Earnings at the end of the fiscal year?

• A) Inventory
• B) Accumulated Depreciation
• C) Customer Refunds Payable
• D) Cost of Goods Sold

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Definitions:

Utilitarian

An ethical theory that posits the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Majority

Majority refers to more than half of a specific group or quantity, often used to describe the greater part of a population or collection.

Virtue

Moral excellence or righteousness, characterized by adherence to moral principles like honesty, compassion, and courage.

Ethical Decisions

Choices made based on moral principles and values, considering what is right and wrong, and often involving dilemmas where interests conflict.