Closing Entries

question 44

Multiple Choice

Closing entries

• A) are prepared before the financial statements.
• B) reduce the number of permanent accounts.
• C) cause the revenue and expense accounts to have zero balances.
• D) summarize the activity in every account.

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Definitions:

Deductive

A logical process wherein a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Value-Laden

Describes concepts, arguments, or statements that are influenced by personal values, biases, or cultural norms, often implying a lack of objectivity.

Inductive Logic

A method of reasoning in which general principles are derived from specific observations.

Deductive Logic

Deductive logic is a method of reasoning from one or more statements (premises) to reach a logically certain conclusion, operating from the general to the specific.