Journal Entries Recorded at the End of Each Accounting Period

question 8

Multiple Choice

Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming year and to update the owner's capital account for the events of the year just finished are

• A) Adjusting entries
• B) Closing entries
• C) Final entries
• D) Work sheet entries
• E) None of these answers is correct.

---

Definitions:

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, particularly in the United States.

Control

The power to influence or direct people's behavior or the course of events, especially in the context of corporate governance or management.

Special Purpose Entities

Legal entities created by a parent company to isolate financial risk and conduct specific activities while protecting the parent company financially.

Primary Beneficiary

The main individual or entity designated to receive the benefits or payouts from an insurance policy, trust, or other financial instrument.