Which of the Following Accounts Is Used ONLY at the End

question 32

Multiple Choice

Which of the following accounts is used ONLY at the end of the accounting period?

• A)Sales revenue
• B)Cost of sales
• C)Net sales revenue
• D)Income summary

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Definitions:

Corporation

A legal entity recognized by law as separate from its owners, with its rights and liabilities, capable of conducting business, entering contracts, and owning assets.

Indorsers

Individuals or entities that sign a document (often a negotiable instrument like a cheque) on the back to signify their agreement to transfer title or to guarantee its terms.

Contractually Liable

A state of being legally obligated by the terms of a contract to perform certain duties or compensate for failure to do so.

Negotiable Instruments

Negotiable instruments are formal financial documents (such as checks, promissory notes, and bills of exchange) that promise to pay a specified amount of money to a person in possession of the instrument under certain conditions.