A Nongovernmental Organization That Serves Its Customers but Does Not

question 82

Multiple Choice

A nongovernmental organization that serves its customers but does not have profit as an organizational goal is referred to as a

• A)business firm.
• B)nonprofit organization.
• C)subchapter S corporation.
• D)cooperative.
• E)social service agency.

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Definitions:

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the temporary accounts for the next accounting period.

Adjusted Trial Balance

A trial balance taken after adjusting entries have been made to ensure total debits equal total credits.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner's equity account, preparing the accounts for the next period.

Adjusted Trial Balance

A record comprising all accounts with their respective balances, updated following adjustment entries, which serves as a foundation for creating financial reports.