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:

Operational Assumptions

Preconceived notions or expectations about how daily business operations should proceed or will occur.

Scenario Planning

A strategic planning method that organizations use to visualize and prepare for various future conditions or events.

Qualitative Forecasting

Prediction methods that rely on expert judgments and non-numerical information, often used for making long-term assessments.

Organizational States

Different phases or conditions in which an organization operates, reflecting its growth, stability, or decline.