Closing Entries

question 20

Multiple Choice

Closing entries:

• A) need not be journalized since they appear on the worksheet.
• B) are prepared before adjusting entries.
• C) are not needed if adjusting entries are prepared.
• D) must be journalized and posted.

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Definitions:

Internal Growth Rate

The internal growth rate is a measure of an organization's ability to increase its sales and profit without issuing more stock or incurring new debt.

Full Capacity

A term referring to the maximum level of production or output that a facility can achieve under normal operating conditions.

Notes Payable

A written agreement where a borrower agrees to pay back a specified sum of money to a lender at a future date.

Accounts Receivable

Funds that a company is due to receive from its debtors for products or services that have been provided but are still outstanding in payment.