What Is Used to Ensure That Balance-Of-Payments Records Are Always

question 59

Multiple Choice

What is used to ensure that balance-of-payments records are always in balance?

• A) sum of squares recording system
• B) bank reconciliation system
• C) double-entry bookkeeping system
• D) archival records system
• E) multifactor recording system

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.

Income Summary

A temporary account used in closing process to summarize the results of a period's revenues and expenses.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Closing Entry

An accounting action that transfers the balances from temporary accounts to permanent ones at the end of an accounting period.