Closing Entries Are Journalized and Posted

question 59

Multiple Choice

Closing entries are journalized and posted

• A) before the financial statements are prepared.
• B) after the financial statements are prepared.
• C) at management's discretion.
• D) at the end of each interim accounting period.

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Definitions:

Flexible Budgeting

An approach in budgeting that allows for adjusting budget allocations based on varying levels of activity or output.

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.

Favorable Variance

A financial term indicating that actual costs were lower or revenues were higher than planned.

Budgeted Amount

The projected costs or revenues allocated to a specific activity or period, based on estimates.