Closing Entries Are Required

question 137

Multiple Choice

Closing entries are required:

• A) If the temporary accounts are to reflect correct amounts for each accounting period.
• B) Only if the company adheres to the accrual method of accounting.
• C) If a company's bookkeeper does not choose to prepare reversing entries.
• D) If management has decided to cease operating the business.
• E) In order to satisfy the Internal Revenue Service guidelines.

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Definitions:

World Price

The international market price of a good or service, influenced by global supply and demand.

Domestic Demand

The aggregate need for products and services inside a nation.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good a seller is willing to supply.

World Price

The international market price of a good or service, determined by the global supply and demand forces.