Closing Entries Are Made

question 32

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 profit (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:

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can enhance personal and professional growth.

Highest Level

Refers to the uppermost tier or maximum degree of something, such as achievement, authority, or quality.

Calm Employees

Workers who maintain a relaxed and stress-free demeanor in the workplace, contributing to a tranquil work environment.

Enthusiastic

Characterized by or displaying intense and eager enjoyment, interest, or approval.