Closing Entries Are an Optional Part of the Accounting Cycle

question 6

True/False

Closing entries are an optional part of the accounting cycle.

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Definitions:

Duty of Care

The legal obligation to ensure the safety or well-being of others by taking reasonable precautions or actions to avoid acts of negligence.

Duty of Diligence

The obligation to perform work with careful attention, effort, and thoroughness, particularly in a professional or legal context.

Profit of Shareholders

The portion of a company's profits that is allocated to stockholders, often seen as a primary goal of businesses to maximize shareholder value.