The Closing Process Is Necessary in Order To

question 98

Multiple Choice

The closing process is necessary in order to:

• A)Calculate net income or net loss for an accounting period.
• B)Ensure that all permanent accounts are closed to zero at the end of each accounting period.
• C)Ensure that the company complies with state laws.
• D)Ensure that net income or net loss and owner withdrawals for the period are closed into the owner's capital account.
• E)Ensure that management is aware of how well the company is operating.