Under Which Circumstance Would One Less Closing Entry Than Usual

question 34

Multiple Choice

Under which circumstance would one less closing entry than usual be made?

• A) When the Retained Earnings account is zero prior to posting of closing entries
• B) When a net loss has been suffered
• C) When revenues have not yet been collected
• D) When net income is zero

---

Definitions:

Expansionary Monetary Policy

A form of macroeconomic policy that aims to stimulate the economy by increasing the money supply or reducing interest rates.

Federal Reserve

The central banking system of the United States, responsible for regulating the nation's financial institutions and managing its monetary policy.

Unemployment

The situation in which individuals who are willing and able to work cannot find employment.

Inflation

The quickness in the rise of aggregate prices for goods and services, impacting negatively on how much can be bought.