The Entry to Close Expense Accounts)

question 25

Multiple Choice

The entry to close expense accounts) :

• A)increases total assets.
• B)increases retained earnings.
• C)decreases retained earnings.
• D)decreases total assets.

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Definitions:

Prenumbered Checks

Checks that are sequentially numbered for tracking purposes and to prevent fraud.

Approved Invoice

An invoice that has been reviewed and authorized for payment by the designated party or department within a company.

Segregation Of Duties

A preventive internal control mechanism designed to reduce the risk of fraud and errors by ensuring that no single individual has control over all phases of a transaction or operation.

Cash Receipts

The collection of money, including coins, notes, check payments, or money orders, received by a business during a given period.