When Closing the Accounting Period You

question 6

Multiple Choice

When closing the accounting period you:

• A)Close temporary accounts at year end
• B)Bring account balances up to date at year end
• C)Close permanent accounts at year-end
• D)All the above

---

Definitions:

Non-Interest Bearing Note

A debt instrument that does not pay interest but is issued at a discount to its redemption value.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used to assess the worth of an investment.

Sales Returns

Sales returns are transactions where customers return previously purchased merchandise back to the seller, often due to defects or dissatisfaction, leading to a reversal of sale revenue.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect and thus considers as a loss.