Which of the Following Accounts Would Be Closed at the End

question 83

Multiple Choice

Which of the following accounts would be closed at the end of the accounting period with a debit?

• A) Operating Expenses.
• B) Cost of Goods Sold.
• C) Sales Returns and Allowances.
• D) Sales.
• E) Sales Discounts.

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Definitions:

External Diseconomies

Negative effects experienced by third parties or the general public due to the activities of a business or industry, not reflected in market costs.

Decreasing-Cost Industry

An industry where the cost per unit of output decreases as the scale of production increases is known as a decreasing-cost industry.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing for the adjustment of all inputs, leading to optimal allocation of resources in the market.

Increasing Cost Industry

An industry in which production costs increase as output expands, typically due to factors such as input limitations and increased demand for inputs.