Closing Entries Are Made

question 77

Multiple Choice

Closing entries are made

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

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Definitions:

[H+]

Symbol denoting the concentration of hydrogen ions in a solution, indicative of its acidity.

HCl

Hydrochloric acid, a strong acid consisting of hydrogen and chlorine that is often used in industrial and laboratory settings.

K

The chemical symbol for potassium, a soft, silvery-white metal that is highly reactive with water.

[H+]

The concentration of hydrogen ions in a solution, which is a measure of the solution's acidity.