Which of the Following Statements About Closing the Accounts Is

question 26

Multiple Choice

Which of the following statements about closing the accounts is NOT true?

• A) Sales revenue account is debited.
• B) Depreciation account is credited.
• C) Share capital is debited.
• D) A profit is credited to the retained profits account.

Utilize the total cost concept for product pricing and understand its distinction from the variable cost concept.

Identify the profitability of products using contribution margin analysis and the theory of constraints.

Understand the application of activity-based costing in determining product costs and profitability.

Understand the fundamental concepts of centralized and decentralized business organizations.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in an open and competitive marketplace.

Loss Carry-Back

Using a year’s capital losses to offset capital gains of previous years.

Capital Losses

Losses incurred when a capital asset is sold for less than its purchase price.

Capital Gains

The profit earned from the sale of an asset or investment that has increased in value.