Which of the Following Statements Best Describes the Purpose of Closing

question 43

Multiple Choice

Which of the following statements best describes the purpose of closing entries?

• A) To faciliate posting and taking a trial balance.
• B) To determine the amount of net income or net loss for the period.
• C) To reduce the balances of temporary accounts to zero so that they may be used to accumulate the revenues, expenses and dividends of the next period.
• D) To complete the record of various transactions that were started in a prior period.

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Definitions:

Germinate

The process by which a plant grows from a seed or similar structure, culminating in the emergence of a new seedling.

Poisson Model

A statistical model used to predict the probability of a given number of events occurring within a fixed interval of time or space.

Probability

A measure of the likelihood of an event occurring, ranging from 0 (impossibility) to 1 (certainty).

Disease

A condition that impairs normal bodily functions, often characterized by specific symptoms and signs, and may be caused by factors such as pathogens, genetics, or environmental elements.