In the General Ledger, the Accounts Used to Determine the Cost

question 45

Multiple Choice

In the general ledger, the accounts used to determine the cost of goods manufactured are closed to the manufacturing summary account, which is then closed to the:

• A) profit account.
• B) cost of sales account.
• C) gross profit account.
• D) income summary account.

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Definitions:

Nutrients

Essential compounds that organisms need to absorb from their surroundings or diet to support growth, reproduction, and health, including vitamins, minerals, proteins, fats, and carbohydrates.

Supplies Account

The Supplies Account is a record that tracks the costs of consumable items used by a business in its operations, which may include office supplies, small tools, and cleaning products.

Assets

Resources owned or controlled by a business or individual, which are expected to provide future economic benefits.

Expenses

Costs incurred in the operation of a business; these are necessary for the company to generate revenues.