A Merchandiser Uses a Perpetual Inventory System

question 231

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 Dividends 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 Retained Earnings account

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Definitions:

Organizational Ethics

The principles and standards that guide behavior and decision-making processes within an organization, shaping its culture and reputation.

Ethical Compliance Programs

Implemented frameworks within organizations designed to ensure activities and practices comply with ethical standards, laws, and regulations.

Federal Sentencing Guidelines

A set of regulations that determine the punishment for individuals and organizations convicted of federal crimes, encouraging ethical behavior through penalties.

Consumer Misconduct

Any behavior by consumers that is unethical or illegal, including fraud and deceit in the marketplace.