An Important Purpose of Closing Entries Is to

question 98

Multiple Choice

An important purpose of closing entries is to

• A) help in preparing financial statements.
• B) set real account balances to zero to begin the next period.
• C) set nominal account balances to zero to begin the next period.
• D) adjust the accounts in the ledger.

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Definitions:

IBM

International Business Machines Corporation, a global technology company known for its computer hardware, software, and IT services.

Planning Gap

The difference between future desired performance and the projection of future performance, if current operations continue, often leading to the development of strategies to bridge the gap.

Sales Revenue Goal

A set financial target for the amount of income generated from the sale of products or services within a specific time frame.

Projection Path

A series of steps or actions that an entity anticipates or plans to take in order to achieve specific objectives or outcomes.