Closing Entries Serve Two Important Purposes: (1)to Return the Balances

question 153

True/False

Closing entries serve two important purposes: (1)to return the balances in all temporary or nominal accounts to zero to start the next accounting period and (2)to transfer the net income (or net loss)and the dividends of the period to the Retained Earnings account.

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Definitions:

Arthropod

Invertebrates, with an exoskeleton and jointed appendages, such as crustaceans and insects.

Lobsters

Marine crustaceans with a hard shell, long antennae, and ten legs, known for being a popular seafood.

Squids

Cephalopod mollusks known for their bilateral symmetry, elongated bodies, large eyes, and ability to squirt ink as a defense mechanism.

Cephalopods

A class of mollusks, including octopuses, squids, and cuttlefish, known for their complex behaviors and advanced nervous systems.