The Closing Process Is Necessary in Order To

question 134

Multiple Choice

The closing process is necessary in order to:

• A) calculate net income or net loss for an accounting period.
• B) ensure that all permanent accounts are closed to zero at the end of each accounting period.
• C) ensure that the company complies with state laws.
• D) ensure that net income or net loss and owner withdrawals for the period are closed into the owner's capital account.
• E) ensure that management is aware of how well the company is operating.

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Definitions:

High Demand

A situation where the desire and need for a product or service greatly exceeds the available supply within a market.

Transportation

The movement of goods and people from one location to another using various modes such as road, rail, air, and sea.

Supply Chain

The interconnected network of businesses and processes involved in the production, handling, and distribution of goods or services, from raw materials to end-user.

Cycle Inventory

Inventory that turns over repeatedly throughout a period as part of the normal course of business operations.