Which Account Will Be Included in Both Service and Merchandising

question 73

Multiple Choice

Which account will be included in both service and merchandising companies closing entries?

• A) Sales
• B) Cost of Merchandise Sold
• C) Purchase Discounts
• D) Sales Returns and Allowances

---

Definitions:

Posting

The process of recording financial transactions to the appropriate accounts in the general ledger.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update the accounts for any accruals and deferrals that were not recorded during the accounting period.

Accounting Cycle

A series of steps performed during an accounting period, starting with recording transactions and ending with the preparation of financial statements.

Balance Sheet

An inventory of a company's financial resources, debts, and shareholders' stake, captured at a particular moment.