The Year End Closing Entries Involve

question 50

Multiple Choice

The year end closing entries involve:

• A) Reversing the entry to record the budget.
• B) Transferring the balances of the activity accounts and of the budgetary accounts to Fund Balance.
• C) Reversing any entries that were made to amend the budget.
• D) All of the above.

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Definitions:

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

Underlying Asset

The financial asset upon which derivatives such as options and futures are based, determining their value.

Strike Price

The set price at which the holder of an options contract can buy (in a call option) or sell (in a put option) the underlying security or commodity.

Freddie Mac

Freddie Mac, short for the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise in the United States that provides a secondary market in home mortgages by purchasing mortgage loans from the lenders.