Explain Why Temporary Accounts Are Closed Each Period

question 42

Essay

Explain why temporary accounts are closed each period.

Understand the recording and impact of dividends on financial statements.

Prepare comprehensive journal entries for accumulated transactions.

Understand the differences between financial accounting and managerial accounting.

Identify the users of accounting information and the purposes for which they use this information.

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Definitions:

Primary Productivity

The rate at which plants and other photosynthetic organisms produce organic compounds (such as carbohydrates) from carbon dioxide and water in the presence of sunlight, which serves as the basis for most food chains.

Photic

Pertaining to the upper layer of a body of water that is illuminated by sunlight, allowing photosynthesis to occur and supporting the majority of aquatic life.

Epipelagic

Relating to the upper layer of the ocean, from the surface to about 200 meters deep, where there is enough sunlight for photosynthesis.

Thermal Stratification

The layering of water in a lake or ocean, based on temperature variations with depth, which can affect aquatic life and water quality.