Which of the Following Accounts Is NOT a Major Account

question 2

Multiple Choice

Which of the following accounts is NOT a major account in the acquisition and payment cycle?

• A) Inventory.
• B) Cost of goods sold.
• C) Accounts payable.
• D) All of the above are major accounts.

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Definitions:

LIFO Method

The LIFO (Last In, First Out) method is an inventory valuation technique where the latest items added to inventory are the first to be sold or used.

Net Income

The remaining earnings of a business after deducting all costs and taxes from its total income.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Net Income

The final profit figure for a company, arrived at by removing all expenses and tax payments from its revenue.