Closing Entries Are Made

question 31

Multiple Choice

Closing entries are made

• A)in order to terminate the business as an operating entity.
• B)so that all assets, liabilities, and stockholders' equity accounts will have zero balances when the next accounting period starts.
• C)in order to transfer net income (or loss) and dividends to the Retained Earnings account.
• D)so that financial statements can be prepared.

---

Definitions:

Spotlight Effect

The inclination to exaggerate the degree to which others observe and assess our looks, actions, and errors.

Defensive Self-Esteem

Self-esteem that is fragile and vulnerable, often leading individuals to react negatively to criticism or perceived threats.

Reciprocal Determinism

a concept in psychology that individuals and their behavior are shaped by the interaction between personal factors, their environment, and their behavior.

Defense Mechanisms

Psychological strategies unconsciously used by individuals to protect themselves from anxiety and to manage emotional conflict and internal or external stressors.