Which of the Following Describes the Correct Sequence of Year-End

question 59

Multiple Choice

Which of the following describes the correct sequence of year-end closing entries?

• A) Close Revenues to Income summary; close Expenses to Income summary; close Income summary to Retained earnings.
• B) Close Expenses to Income summary; close Revenues to Income summary; close Income summary to Retained earnings.
• C) Close Revenues to Income summary; close Income summary to Retained earnings; close Expenses to Retained earnings.
• D) Close Revenues to Retained earnings; close Expenses to Retained earnings; close Income summary to Retained earnings.

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Definitions:

Organization

The act or process of structuring or arranging components in a systematic way to achieve goals or maintain order.

Moral Principle

Fundamental beliefs about what is right and wrong that guide an individual's behavior and decision-making.

Reasoning Principle

A fundamental aspect of human thought that involves drawing conclusions or making inferences based on premises.

Pleasure Principle

is a psychoanalytic concept suggesting that people seek pleasure and immediate gratification of needs to avoid pain, guiding the id's desires.