Which of the Following Statements Is True Regarding the Closing

question 90

Multiple Choice

Which of the following statements is true regarding the closing process of a merchandiser?

• A)Sales Discounts,Sales Returns and Allowances,and Cost of Goods sold should all be credited during closing.
• B)Sales Discounts,Sales Returns and Allowances,and Cost of Goods sold should all be debited during closing.
• C)Sales Discounts and Sales Returns and Allowances should be debited; Cost of Goods Sold should be credited during closing.
• D)Sales Discounts and Sales Returns and Allowances should be credited; Cost of Goods Sold should be debited during closing.
• E)Sales Discounts and Sales Returns and Allowances are not closed.Cost of Goods Sold should be credited during closing.

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Definitions:

Put Bond

A type of bond that allows the holder to force the issuer to buy back the bond at specified times before maturity.

Deferred Call Provision

A clause in a bond contract that prohibits the issuer from repurchasing the bond until a specified date has passed.

Callable Bond

A type of bond that can be redeemed by the issuer before its maturity date at a specified price.

Redemption

The process by which securities or financial instruments are converted into cash or its equivalent value.