The Special Account Used Only in the Closing Process to Temporarily

question 237

Multiple Choice

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the retained earnings account is the:

• A)Income Summary account.
• B)Closing account.
• C)Balance column account.
• D)Contra account.
• E)Nominal account.

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Definitions:

Carrying Costs

Expenses incurred for holding inventory over a period, which can include financial costs, storage fees, and loss due to obsolescence.

Default Rate

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