Closing the Temporary Accounts at the End of Each Accounting

question 7

Multiple Choice

Closing the temporary accounts at the end of each accounting period

• A)Gives the withdrawals account a zero balance.
• B)Serves to transfer the effects of these accounts to the proper equity account on the balance sheet.
• C)Prepares the withdrawals account for use in the next period.
• D)Gives the revenue and expense accounts zero balances.
• E)All of these answers are correct.

Analyze the impact of fiscal policies on the economy, including during recessions and periods of full employment.

Explain the role and effects of automatic stabilizers in the economy.

Compare and contrast the views of Keynesian and conservative economists on the crowding-out effect.

Describe the crowding-out and crowding-in effects and their implications for private investment and economic growth.

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Definitions:

Nucleus

In biology, the membrane-bound organelle in a cell that contains genetic material; in physics, the positively charged center of an atom composed of neutrons and protons.

Red Blood Cells

Cells in the blood that transport oxygen from the lungs to body tissues and carbon dioxide from tissues back to the lungs.

Assimilation

The process by which individuals integrate new information into existing cognitive schemas, perceptions, and understanding.

Schema

A cognitive framework or concept that helps organize and interpret information in the world around us.