In the General Ledger the Accounts Used to Determine the Cost

question 52

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

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Definitions:

Dividends

A portion of a company's earnings distributed to its shareholders, representing a share of the corporate profits.

Dividend Controversy

A debate or disagreement regarding the relevance, impact, or appropriateness of dividend policies on a company's value and shareholders' wealth.

Stock Price

Stock price is the cost of purchasing a share of a company's stock, representing ownership in the company and its value on the stock market.

Paying Dividends

The act of distributing a portion of a company's earnings to its shareholders as a reward for their investment.