Closing Entries Are Made

question 40

Multiple Choice

Closing entries are made

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

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Definitions:

Cognitive Psychologist

A professional who studies mental processes including how people think, perceive, remember, and learn, often focusing on areas such as problem-solving, decision-making, and memory.

Cognitive Processes

The mental activities involved in acquiring, storing, and manipulating knowledge, such as perception, memory, and thinking.

Between-Subjects Design

A research design in which different groups of participants are exposed to different conditions or treatments.

Within-Subjects Design

A research paradigm in which the same experimental participants participate in different experimental conditions.