The Balance in an Expense Account Is Closed to A(n)

question 103

Multiple Choice

The balance in an expense account is closed to a(n)

• A) capital account.
• B) revenue account.
• C) drawing account.
• D) income summary account.

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Definitions:

Inventory Levels

Inventory levels refer to the quantity of goods and materials on hand at any given time within a business.

FIFO Cost

First In, First Out cost method, an inventory valuation method where the goods first purchased or produced are the first to be sold, affecting the value of inventory on hand and cost of goods sold.

Periodic Inventory

An inventory system where a company physically counts its inventory at specific intervals to determine the cost of goods sold and ending inventory levels.

Inventory Balance

The total value of a company's inventory, including raw materials, work-in-progress, and finished goods at any given time.