In the Closing Procedure, the Expense Account(s) Should Be Closed

question 29

Multiple Choice

In the closing procedure, the expense account(s) should be closed into the:

• A) Income Summary account.
• B) Net Income account.
• C) Expense Payable account.
• D) Drawings Account.

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Definitions:

Skimming Pricing Strategy

A pricing approach where a relatively high price is set for a new product or service at its launch to maximize profitability before aiming at more price-sensitive customers.

Odd Pricing Strategy

A pricing strategy where prices are set slightly below a round number, e.g., $19.99, to make products appear less expensive.

Standardization

The process of implementing and developing technical standards to maximize compatibility, efficiency, and quality among products and systems.

Differentiation

A marketing strategy where a company designs its products or services to be unique and attractive to a specific customer segment, setting it apart from competitors.