The Purpose of Closing Entries Is to

question 40

Multiple Choice

The purpose of closing entries is to

• A)update a periodic inventory account for credit sales
• B)update the retained earnings account on a daily basis
• C)apportion prepaid expenses and unearned revenues to bring the accounts up to date
• D)reduce all temporary accounts to zero

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Definitions:

Scientific Inquiry

A systematic process of investigation and experimentation used to explore observations and answer questions about the natural world.

Abstract Reasoning

The ability to analyze information, detect patterns and relationships, and solve problems on a complex, intangible level.

Concrete-operational Thought

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.

Formal-operational Thought

The fourth and final stage of Piaget's theory of cognitive development, characterized by the ability to think abstractly, logically, and systematically.