Which of the Following Statements Best Describes the Purpose of Closing

question 43

Multiple Choice

Which of the following statements best describes the purpose of closing entries?

• A) To faciliate posting and taking a trial balance.
• B) To determine the amount of net income or net loss for the period.
• C) To reduce the balances of temporary accounts to zero so that they may be used to accumulate the revenues, expenses and dividends of the next period.
• D) To complete the record of various transactions that were started in a prior period.

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Definitions:

Tokens

Symbols or objects used as representations of value or exchange, often employed in token economies for behavior reinforcement.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, operant conditioning involves an association between behaviors and their consequences.

Reinforcement

In behaviorism, any event that strengthens or increases the likelihood of a behavior.

Fixed-Interval Schedules

A schedule of reinforcement where rewards are provided after a fixed amount of time has passed since the last reinforcement.