Which of the Following Is an Optional Step in the Accounting

question 38

Multiple Choice

Which of the following is an optional step in the accounting cycle?

• A) Adjusting entries
• B) Closing entries
• C) Correcting entries
• D) Reversing entries

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Definitions:

Operating Expenses

Expenses incurred during the normal functioning of a business, excluding the cost of goods sold; these can include salaries, rent, utilities, and marketing expenses.

Closing Entries

journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby preparing the accounts for the next period.

Capital Account

A financial statement that shows the changes in a company's equity throughout an accounting period, including contributions from and distributions to owners.

Withdrawals Account

An account used to track money taken out of a business by its owner(s) for personal use.