Which of the Following Statements Best Describes the Purpose of Closing

question 99

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 following period.
• C) To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period.
• D) To complete the record of various transactions that were started in a prior period.

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Definitions:

Myelination

The process of forming a myelin sheath around the nerves to increase the speed at which electrical impulses are conducted.

Axons

Long, threadlike part of a nerve cell along which impulses are conducted from the cell body to other cells.

Action Potential

A rapid and temporary electrical signal that travels along the membrane of a neuron, facilitating neurotransmission.

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act and is a component of self-regulation.