Closing Entries Are Made

question 183

Multiple Choice

Closing entries are made

• A) in order to terminate the business as an operating entity.
• B) so that all assets liabilities and owner's capital accounts will have zero balances when the next accounting period starts.
• C) in order to transfer net income (or loss) and owner's drawings to the owner's capital account.
• D) so that financial statements can be prepared.

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Definitions:

Albumin Level

The concentration of albumin, a major protein in the blood, which is a key marker for assessing nutritional status and liver function.

Generalized Edema

A medical condition characterized by widespread swelling in the body caused by excessive retention of fluid in the tissues.

Furosemide

A loop diuretic drug used to treat fluid build-up due to heart failure, liver scarring, or kidney disease.

Potassium 2.8 mEq/L

A measurement indicating low potassium levels in the blood, which can affect heart and muscle function.