Which of the Following Accounts Should Be Closed to Income

question 152

Multiple Choice

Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

• A) Merchandise Inventory
• B) Accumulated Depreciation
• C) Drawing
• D) Cost of Merchandise Sold

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Definitions:

Homestead

A dwelling with its land and buildings, occupied by the owner as a home and typically used for agriculture or similar purposes.

Great Britain

A sovereign state located off the north-western coast of continental Europe, comprising England, Scotland, and Wales.

Commercial Capitalism

An economic system characterized by private ownership of assets and a market-driven economy where goods are produced and sold for profit.

Financial Capitalism

An economic system where financial markets play a critical role in determining the allocation of capital, the pricing of assets, and the management of economic risks.