Closing the Temporary Accounts at the End of Each Accounting

question 7

Multiple Choice

Closing the temporary accounts at the end of each accounting period does all of the following except:

• A) Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet.
• B) Prepares the withdrawals account for use in the next period.
• C) Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.
• D) Brings the revenue and expense accounts to zero balances.
• E) Has no effect on the owner's capital account.

---

Definitions:

Premium

refers to the amount paid for an insurance policy or the additional cost above the normal price for a product or service perceived to be of higher quality.

CRM Software

Customer Relationship Management software; a tool that helps businesses manage, record, and evaluate their interactions with current and potential customers.

Transactional Selling

A sales approach focused on short-term transactions, emphasizing individual sales rather than building long-term relationships with customers.

Shelf Positioning

The physical placement of the product within the retailer’s store.