At the End of the Accounting Period, Closing Entries Are

question 7

Multiple Choice

At the end of the accounting period, closing entries are used to reset the balance of the temporary accounts to zero.Into what account are the balances of the temporary accounts transferred?

• A)Unearned revenue
• B)Retained earnings
• C)Capital stock account
• D)Net income account

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Definitions:

Stock Options

Financial instruments granted to employees, giving them the right to buy the company's stock at a fixed price in the future.

Sales Commissions

Financial rewards given to sales personnel based on the volume or value of sales they have achieved, serving as an incentive.

Piece-Rate Pay

A compensation system where employees are paid based on the quantity of units they produce or complete.

Decision-Making Responsibility

The obligation to make choices that affect an organization's performance and to bear the consequences of those choices.