A Common Risk Relating to Closing Entries Is That _______

question 82

Multiple Choice

A common risk relating to closing entries is that _______.

• A)permanent accounts are often closed by mistake
• B)temporary accounts are often closed by mistake
• C)management may override controls relating to adjusting and closing entries
• D)temporary accounts, if closed, will carry a balance over to the subsequent accounting period

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Definitions:

Least Squares Regression

A statistical method used to model and analyze the relationship between a dependent variable and one or more independent variables by minimizing the sum of the squares of the differences between the observed and predicted values.

Variable Manufacturing Cost

Costs that vary with production volume, including direct materials, direct labor, and certain overheads.

Production Volume

The total quantity of units produced during a specific period.

Least-squares Regression

A statistical method used to determine the best-fitting line through a set of points by minimizing the sum of the squares of the offsets.