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What Is the Purpose of Closing Entries? Describe the Closing

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Essay

What is the purpose of closing entries? Describe the closing process.


Definitions:

Legal Representative

An individual or organization officially appointed to act on another's behalf in legal matters or proceedings.

Market Value

The current price at which an asset or service can be bought or sold in an open and competitive marketplace.

Legal Capacity

The ability of an individual to enter into legal agreements or contracts, often age or condition-related.

Insane Person

A legally declared inability of an individual to manage their affairs due to mental illness or incapacity.

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