Closing Which of These Accounts Results in a Credit to the Profit

question 35

Multiple Choice

Closing which of these accounts results in a credit to the Profit and Loss Summary account?

• A)Sales
• B)Depreciation
• C)Rent Expense
• D)Drawings

Understand the concept and calculation of the Profitability Index for investment projects.

Understand the impact of salvage value, working capital, and income taxes on the evaluation of investment projects.

Understand the method for computing the simple rate of return and its significance in investment decisions.

Distinguish between different investment evaluation methods, namely the Profitability Index, Internal Rate of Return (IRR), and Net Present Value (NPV), and their applicability in ranking investment projects.

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Definitions:

Vertebral Column

The spine or backbone, consisting of a series of vertebrae that enclose and protect the spinal cord.

Interspinales

Muscles located between the spinous processes of the vertebrae, contributing to spinal stability and movement.

Multifidus

The multifidus is a deep muscle of the back that stabilizes the vertebrae during movement and helps maintain proper posture.

Psoas Minor

A slender muscle of the human body, located anterior to the psoas major muscle, that plays a role in flexing the lumbar region of the vertebral column.