Closing Entries Are Made

question 77

Multiple Choice

Closing entries are made

• A) in order to terminate the business as an operating entity.
• B) so that all assets, liabilities, and equity accounts will have zero balances when the next accounting period starts.
• C) in order to transfer net income (or loss) and dividends to Retained Earnings.
• D) so that financial statements can be prepared.

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Definitions:

Attorney Fees

The costs associated with hiring legal representation, often recoverable in legal proceedings under specific conditions.

Title VII

Part of the Civil Rights Act of 1964, this title prohibits employment discrimination based on race, color, religion, sex, or national origin in the United States.

Prevailing Party

The party that wins a lawsuit or legal proceeding, either through judgement or settlement.

Punitive Damages

Financial compensation awarded in a lawsuit, exceeding simple compensation, intended to punish the defendant for egregious behavior.