One Purpose of Closing Entries Is to

question 54

Multiple Choice

One purpose of closing entries is to

• A) transfer the results of operations to owner's equity.
• B) reduce the owner's capital account balance to zero so that the account is ready for the next period.
• C) adjust the ledger account balances to provide complete and accurate figures for use on financial statements.
• D) close all accounts so that the ledger is ready for the next accounting period.

---

Definitions:

Negative Thoughts

Cognitive processes or thoughts that are detrimental to one’s self-esteem, mood, and actions, often a focus in cognitive-behavioral therapy.

Biochemical Imbalances

Abnormal levels of certain chemicals in the body that can affect physical and mental health.

Ruminative Responses

Patterns of behavior where an individual obsessively thinks about or dwells on stressful, negative experiences or emotions.

Cognitive Triad

A concept in cognitive therapy developed by Aaron T. Beck, focusing on an individual's beliefs about themselves, their world, and the future, often used to understand depression.