Closing Entries Are

question 12

Multiple Choice

Closing entries are

• A) Required to bring all real accounts to a zero balance at the end of the accounting period
• B) Not required to be posted
• C) Required to bring all nominal accounts to a zero balance prior to starting a new accounting cycle
• D) Generally taken from the financial statements rather than from the work sheet or the accounts themselves

---

Definitions:

Excise Tax

A tax imposed on specific goods and services, such as gasoline, cigarettes, and alcohol.

Upsloping

Describes a line or curve on a graph that moves upward as it progresses from left to right, often used to depict positive relationships between variables.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale, holding all else constant.

Highly Inelastic

Describes a situation where demand or supply shows little to no response to changes in price, often due to the lack of close substitutes.