Closing Entries Are Required

question 82

Multiple Choice

Closing entries are required:

• A)If management has decided to cease operating the business.
• B)Only if the company adheres to the accrual method of accounting.
• C)If a company's bookkeeper does not choose to prepare reversing entries.
• D)If the temporary accounts are to reflect correct amounts for each accounting period.
• E)In order to satisfy the Internal Revenue Service guidelines.

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Definitions:

Offer

A proposal by one party to another regarding a potential contract, indicating a willingness to enter into an agreement under specified terms.

Mailbox Rule

A legal principle that considers a contract offer as accepted once the acceptance has been placed in the mailbox for return, even if it has not yet been received by the offeror.

Acceptance

In contract law, refers to the expression by the offeree to agree to the terms of an offer, resulting in a binding contract.

Offer

A proposal by one party to form a contract, which becomes binding if accepted by the party to whom it's made.