The Preparation of Closing Entries

question 19

Multiple Choice

The preparation of closing entries:

• A) is an optional step in the accounting cycle.
• B) results in zero balances in all accounts at the end of the period so that they are ready for the following period's transactions.
• C) is necessary before financial statements can be prepared.
• D) results in transferring the balances in all temporary accounts to Retained Earnings.

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Definitions:

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Components within a computational system responsible for executing instructions and processing data.

Central Processor

A component in the cognitive system or a computer that is responsible for interpreting, processing, and executing instructions.

Paradigm

A typical example or pattern of something; a model or framework.

Knowledge

Facts, information, and skills acquired through experience or education, the theoretical or practical understanding of a subject.