List and Describe the Purpose of the Four Closing Entries

question 188

Essay

List and describe the purpose of the four closing entries.

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Definitions:

Assessing Risk

The process of identifying and evaluating potential risks and their impact on a project, organizational objective, or activity.

Risk Mitigation

Strategies and methods implemented to reduce the severity, impact, or likelihood of potential risks to a project or organization.

Risk Evaluation

The process of identifying, assessing, and prioritizing risks to an organization or project, followed by coordinated efforts to minimize or manage the impact of these risks.

Risk Management

The process of identifying, assessing, and controlling threats to an organization's capital and earnings, including both strategic and operational risks.