To Close the Books, Change the Trial Balance Date to December

question 3

True/False

To close the books, change the trial balance date to December 31 of the current year.

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Definitions:

Temporary Accounts

Accounts that are closed at the end of the accounting year, including income, expense, and withdrawal accounts, to prepare the company for the new fiscal year.

Permanent Accounts

Accounts that carry their ending balances over into the next accounting period, typically including assets, liabilities, and equity accounts.

Current Ratio

This financial indicator quantifies a corporation's ability to satisfy its short-term liabilities with its current assets, based on a comparison calculated by dividing the former by the latter.

Evaluate

To judge or determine the significance, worth, or quality of something through careful examination and analysis.