Which Account Has a Balance Equal to Profit Immediately Before

question 42

Multiple Choice

Which account has a balance equal to profit immediately before it is closed?

• A)The Income summary account
• B)The Drawings account
• C)The Capital account
• D)The Profit account

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Definitions:

Replacement Costs

The cost to replace an asset at its current value without deduction for depreciation.

Repair Costs

The expenses incurred in fixing or maintaining equipment, machinery, or buildings to ensure their proper functioning and longevity.

Sinking Funds

A fund established by an entity to set aside money over time for the purpose of paying off debt or a major expense.

Marginal Revenue Curves

These are graphs that show the relationship between the amount of output a firm sells and the revenue it gains from selling an additional unit of output.