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:

Symptom of Groupthink

A sign indicating the presence of groupthink, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Group Agreement

The consensus or unified decision-making process within a group, where members collectively agree upon solutions or actions.

Bad Decision

A choice or judgment that results in undesired outcomes, often based on faulty reasoning, insufficient information, or emotional biases.

Groupthink

A phenomenon where the desire for harmony or conformity in a decision-making group leads to an incorrect or deviant decision-making outcome.