Income Statement Accounts Are Closed at What Stage of the Accounting

question 30

Multiple Choice

Income statement accounts are closed at what stage of the accounting process?

• A)At the time that adjustments are made.
• B)After adjustments are made and before the income statement is prepared.
• C)After the income statement and the statement of retained earnings are prepared,but before the balance sheet is prepared.
• D)As the last journal entries at the end of each accounting year.

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Definitions:

Semantic Encoding

The process of converting information into a meaningful context, such as by associating it with other related concepts, to facilitate better memory retention.

Large Capacity

Refers to the ability to hold or contain a large amount of information, substance, or items either physically or mentally.

Long-term Storage

The aspect of memory that pertains to the capacity to store information indefinitely.

Short-term Storage

A cognitive process related to memory that is responsible for temporarily holding small amounts of information in an active, readily available state.