Explain Why Temporary Accounts Are Closed Each Period

question 42

Essay

Explain why temporary accounts are closed each period.

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Definitions:

Internal Causes

Reasons or factors that originate within an individual or system, leading to certain outcomes or behaviors.

External Causes

Factors or conditions outside of an individual's control that impact events or outcomes, often used in analyzing behaviors or situations.

Self-Serving Bias

The tendency to attribute one’s successes to internal causes and one’s failures to external causes.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology and contributed significantly to the understanding of the human psyche.