The Closing Process

question 106

Multiple Choice

The closing process

• A)Is done each time a transaction takes place and is journalized.
• B)Transfers all income statement items to their related statement of financial position account (for example, salaries expense transfers to salaries payable).
• C)Posts all closing entries to the appropriate general ledger account.
• D)All of the choices are correct regarding the closing process.

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Definitions:

Employee Referral

A program where existing employees are rewarded for referring qualified candidates for employment in the same company.

Employee Benefit

Non-wage compensation provided to employees, which may include health insurance, retirement plans, and paid vacation.

Wages

Payments made by employers to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Salaries

Regular payments made by an employer to an employee, typically monthly, for the professional services the employee provides.