The Closing Process Is Necessary in Order To

question 104

Multiple Choice

The closing process is necessary in order to:

• A)Calculate net income or net loss for an accounting period.
• B)Ensure that all permanent accounts are closed to zero at the end of each accounting period.
• C)Ensure that the company complies with state laws.
• D)Ensure that net income or net loss and dividends for the period are closed into the retained earnings account.
• E)Ensure that management is aware of how well the company is operating.

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Definitions:

Severe Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life, more intense than general depression.

Obsessive-Compulsive Disorder

A mental health disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).

Psychosurgery

Surgical operations on the brain aimed at relieving severe mental disorders.

Prefrontal Lobotomy

A surgical operation that severs connections in the brain's prefrontal lobe, once used to treat mental illness.