Closing Entries

question 7

Multiple Choice

Closing entries:

• A)are prepared before financial statements are prepared.
• 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:

Heroin

An opioid drug made from morphine, highly addictive and illegal in most jurisdictions.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug known for altering perception and causing hallucinations.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Higher Status

A position that is regarded as superior or more prestigious compared to others within a social hierarchy.