Closing the Temporary Accounts at the End of Each Accounting

question 88

Multiple Choice

Closing the temporary accounts at the end of each accounting period

• A) Serves to transfer the effects of these accounts to the proper equity account on the balance sheet
• B) Prepares the withdrawals account for use in the next period
• C) Gives the revenue and expense accounts zero balances
• D) Gives the withdrawals account a zero balance
• E) All of these

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Definitions:

Rational Consumer

A consumer who systematically and logically evaluates available options to maximize their satisfaction or utility in decision-making processes.

Marginal Utility

The surplus enjoyment or utility obtained from the consumption of one extra unit of a good or service.

Budget Line

A line that shows the different combinations of two products a consumer can purchase with a specific money income, given the products’ prices.

Marginal Utility

The additional satisfaction or utility a consumer gets from consuming one more unit of a good or service.