Which of the Following Statements About Closing the Accounts Is

question 19

Multiple Choice

Which of the following statements about closing the accounts is NOT true?

• A) Sales revenue account is debited.
• B) Depreciation account is credited.
• C) Share capital is debited.
• D) A net loss is debited to the retained profits account.

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Definitions:

Inventory

The total amount of goods or materials held in stock by a business, crucial for meeting customer demand and ensuring smooth operations.

Classification Method

A systematic approach in categorizing data or items based on shared characteristics or criteria.

Contribution To Profit

The measure of how individual products, services, or business units add to the overall profit of a company.

Quadrant Model

A strategic planning tool that divides information, risks, or activities into four quadrants to facilitate analysis and decision-making.