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:

Ingratiating Tactics

Ingratiating tactics involve behaviors aimed at making oneself more likable or agreeable to others, often to gain favor or approval.

Behavior Modification

A psychological technique aimed at changing an individual's behavior through reinforcement, punishment, and other stimuli.

Antecedents

Factors or events that precede and affect the behavior of individuals or outcomes of situations.

Capacity

The maximum amount that something can contain or produce, or the ability to perform, understand, or withstand.