Which of the Following Accounts Will Be Closed by Crediting

question 54

Multiple Choice

Which of the following accounts will be closed by crediting the Income summary account?

• A)Accounts payable
• B)Service revenue
• C)Depreciation expense
• D)Accumulated depreciation

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Definitions:

Net Sales

The revenue from sales of goods or services after deducting returns, allowances for damaged or missing goods, and discounts.

Vertical Analysis

A financial analysis method that lists each item in a financial statement as a percentage of a base figure, facilitating comparisons across different periods or companies.

Base Item

A reference or standard item used for comparison purposes in financial and economic analysis.

Horizontal Analysis

A financial analysis technique that compares historical financial data across time, typically from year to year, to identify trends and growth patterns.