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:

Liable to Third Parties

The legal responsibility of an individual or entity towards individuals who are not a direct party to a contract or agreement.

Professional's Expertise

The specialized knowledge and skills possessed by a professional in their field of work.

Relied Upon

A term used to describe something that is trusted or depended on for support, help, or decision-making.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise working together toward a common goal.