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:

Social Insurance Taxes

Taxes collected by a government to fund social security programs, providing benefits for retirees, the disabled, and the unemployed.

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations, determined by the law of the country in which the corporation is registered.

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Guidelines, regulations, and rules implemented by the government to influence the economy or address societal issues.