What Is the Purpose of Closing the Books

question 64

Multiple Choice

What is the purpose of closing the books?

• A)To reset the revenue and expense accounts to zero so that they are ready to record the next period's transactions
• B)To reset the asset and liability accounts to zero so that they are ready to record the next period's transactions
• C)To transfer all account activity to retained earnings so that they are ready to record the next period's transactions
• D)To transfer all account activity to paid-in-capital so that they are ready to record the next period's transactions
• E)To transfer and reset any account with activity during the prior period to zero

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Definitions:

Peripheral Nerves

Nerves located outside the brain and spinal cord that connect the central nervous system to limbs and organs.

Brain

Central control organ of a nervous system; receives and integrates sensory information, regulates internal conditions, and sends out signals that result in movements.

Voltage-gated Sodium

Channels that open or close in response to changes in membrane potential, allowing sodium ions to enter or exit cells, critical for the generation and conduction of electrical signals in neurons.

Potassium Channels

Protein channels in cell membranes that specifically allow potassium ions to pass through, playing key roles in maintaining cell potential and regulating cellular processes.