Multiple choice

Directions: Choose the correct option for the given question:

The closing balance of cost of sales account is transferred to

  1. profit and loss account

  2. costing profit and loss account

  3. cost of sales account

  4. general ledger account

  5. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In cost accounting, the Costing Profit and Loss account is used to determine the profit or loss from operations. The balance from the cost of sales account is transferred here to calculate the final costing profit.

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