Answer: c. To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period.
Explanation:
Closing entries are the journal entries that are made at the end of an accounting period in order to be able to transfer temporary accounts to the permanent accounts.
The primary purpose of closing entries is to reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period.
Therefore, the correct option is C.
I think manipulation. Sorry if it’s wrong
Answer:
The computations are as follows
Explanation:
a) Before tax income is
= After Tax Income ÷ (1 - Tax Rate)
= $58,500 ÷ (1 - 0.35)
= $90,000
b) Total Contribution Margin
Contribution Margin = Fixed Costs + Before Tax Income
= $190,000 + $90,000
= $280,000
c) Calculation of Total Sales
Variable Cost is 75% of Sales
SO, Contribution Margin 25% of Sales
Contribution Margin = $280,000
25% of Sales = $280,000
Sales = $280,000 ÷ 25%
= $1,120,000
d) Break Even Point in dollars
Break Even Point in dollar = Total Fixed Costs ÷ Contribution Margin percentage
= $190,000 ÷ 25%
= $760,000
We simply applied the above formula
Answer:
CPI and WPI
Explanation: Consumer Price Index measures the percentage change in the price of a basket of goods and services consumed by households. Wholesale Price Index is the price of representative of basket of wholesale goods.
