Closing Entries

question 44

Multiple Choice

Closing entries

• A) are prepared before the financial statements.
• B) reduce the number of permanent accounts.
• C) cause the revenue and expense accounts to have zero balances.
• D) summarize the activity in every account.

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Definitions:

Wealthiest People

Individuals with the highest net worth in the world, often derived from their ownership in profitable businesses, investments, and assets.

Rich Parents

Colloquially refers to individuals whose parents possess substantial wealth, potentially affecting their economic opportunities.

Lowest Quintile

Refers to the bottom 20% of a population sorted by income or wealth.

Total Income

The sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings received by individuals or businesses in a given period.