When Closing Entries Are Made

question 85

Multiple Choice

When closing entries are made:

• A)All ledger accounts are closed to start the new accounting period.
• B)All temporary accounts are closed but permanent accounts are not closed.
• C)All real accounts are closed but nominal accounts are not closed.
• D)All permanent accounts are closed but nominal accounts are not closed.
• E)All balance sheet accounts are closed.

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Definitions:

Profit-Maximizes

The method or approach of modifying production and pricing to secure the maximum achievable profit.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, protecting existing firms from new entrants.

Scarce Resource

A resource with limited availability in comparison to the desired use which exceeds its supply in an economic environment.

Technological Superiority

Having more advanced and efficient technology compared to competitors, often leading to a competitive advantage.