Which of the Following Accounts Are Temporary Accounts That Must

question 75

Multiple Choice

Which of the following accounts are temporary accounts that must be closed at the end of the year?

• A)Assets, liabilities and capital
• B)Revenues, expenses and capital
• C)Assets, liabilities and drawings
• D)Revenues, expenses and drawings

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Definitions:

Voter Failure

A situation where voters make an uninformed or poor choice, often due to lack of information or misleading information, that does not align with their interests.

Negative Externalities

Costs or disadvantages suffered by a third party due to an economic transaction that they are not directly involved in.

Economic Efficiency

A state in which resources are allocated in a way that maximizes the production of goods and services at the least cost and minimum waste.

Congestion

A state of overcrowding in a space or area, often leading to traffic jams, delayed services, or inefficiency.