The 18^th Amendment to the Constitution, Passed in 1920, Created

question 39

Multiple Choice

The 18^th Amendment to the Constitution, passed in 1920, created a period known as __________.

• A)the depression
• B)prohibition
• C)probation
• D)Women's Christian Temperance Union

---

Definitions:

Unadjusted Trial Balance

A preliminary list of all accounts and their balances before any adjusting entries are made, used to verify the equality of debits and credits.

Closing Entry

A closing entry is an accounting action that transfers the balances of temporary accounts to permanent accounts, thereby resetting the temporary accounts to zero for the start of the next accounting period.

Expense Accounts

Accounts that track the costs incurred by a business in its operational activities, which are then used to calculate net income by subtracting them from revenues.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period, facilitating the calculation of net income or loss.