Each of the Following Accounts Is Closed to Income Summary

question 188

Multiple Choice

Each of the following accounts is closed to Income Summary except

• A) Expenses.
• B) Owner's Drawings.
• C) Revenues.
• D) All of these are closed to Income Summary.

Identify different cost models and their applications in financial reporting and decision making.

Comprehend the relevance range and its impact on cost calculations and analysis.

Understand how to calculate the contribution margin per unit sold.

Calculate total variable costs at a given level of activity within the relevant range.

---

Definitions:

Contract

A lawful pact made between two or more parties, which can be upheld by legal means.

Repudiated

The act of rejecting or disowning a contractual obligation or agreement, often leading to termination of the contract.

Merchant

A business or individual engaged in the trade of goods, services, or commodities for profit.

Credit

The provision of resources (like money) by one party to another, where the second party agrees to repay the first party at a later date, usually with interest.