Closing Entries Are Made

question 40

Multiple Choice

Closing entries are made

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

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Definitions:

Product Extension

The strategy of introducing additional versions of a product to the market, which may vary in size, flavor, or other characteristics.

Product Customization

The process of modifying or building a product according to the specific requirements or preferences of the customer.

Product Integration

A marketing strategy where products are placed into non-advertising content, such as TV shows or movies, in a way that promotes the product naturally within the storyline.

Product Adaptation

The process of modifying an existing product to better suit the needs or preferences of a specific market or set of consumers.