A Merchandiser Uses a Perpetual Inventory System

question 272

Multiple Choice

A merchandiser uses a perpetual inventory system.The third step in the process of closing the accounts of a merchandiser is to ________.

• A) make the revenue accounts equal to zero via the Income Summary account
• B) make the Income Summary account equal to zero via the Owner, Withdrawals account
• C) make the expense accounts equal to zero via the Income Summary account
• D) make the Income Summary account equal to zero via the Owner, Capital account

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Definitions:

Tangible Capital

Physical assets like buildings, machinery, and equipment that are used in the production process of a business.

Turbine Manufacturing

The production process of turbines, which are rotary mechanical devices that extract energy from a fluid flow and convert it into useful work.

Tangible Capital

Physical assets possessed by a company that are used in its operations, such as machinery, buildings, and equipment.

Wind Power

The conversion of wind energy into a usable form of power, typically electricity, using wind turbines.