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:

To-Be-Chosen Option

The choice or selection that is considered to be the most suitable or desirable among available alternatives.

Reasonable Options

Choices or alternatives that are sensible and based on good judgment.

Preconceptions

Pre-existing opinions or beliefs that shape one's understanding or interpretation of new information.

Dominance Structuring

The organization of a social group based on a hierarchy of power or dominance, where individuals or groups assert control over others.