Which of the Following Account(s) Would Remain Open After Closing

question 98

Multiple Choice

Which of the following account(s) would remain open after closing entries?

• A) Accounts Payable
• B) Equipment
• C) Owner's capital
• D) All of the answers listed

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Definitions:

Perpetual Inventory System

An inventory management method where inventory levels are updated in real-time following each sale or purchase transaction.

Net Income Manipulation

The practice of using accounting tricks to make a company's financial performance appear better than it actually is.

Average Cost Formula

A method used in accounting and inventory management to determine the cost of goods sold and the ending inventory value by calculating the average cost of all similar items.

FIFO

"First In, First Out," an inventory valuation method that assumes goods are sold in the order they are acquired.