Closing Entries Are Unnecessary If the Business Plans to Continue

question 90

True/False

Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.

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Definitions:

Administrative Actions

The activities carried out by government or regulatory agencies in pursuit of their authorized functions, including rule-making, adjudication, or the enforcement of a specific regulatory agenda.

Operating Costs

Expenses associated with the day-to-day functions of a business entity, excluding costs related to production.

Regulatory Flexibility Analysis

An evaluation required by law for some new regulations, assessing the impact of the regulation on small entities.

Significant Impact

A considerable effect on something, particularly relating to decisions or actions that greatly affect a company, environment, or policy.