The Entries That Transfer the Revenue, Expense, and Withdrawal Balances

question 156

Multiple Choice

The entries that transfer the revenue, expense, and withdrawal balances to the Owner's Name, Capital account to set these balances to zero for the next period are called:

• A)closing entries.
• B)opening entries.
• C)adjusting entries.
• D)temporary accounts.

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Definitions:

Business Firm

An organization engaged in commercial, industrial, or professional activities, aiming to earn profits by providing goods or services.

Usury Law

Legislation that sets maximum interest rates that can be charged on loans, to prevent excessive interest rates or usury.

Efficiency Of Investment

The degree to which invested resources are used optimally to achieve desired outcomes without waste.

Beneficiary

An individual or entity entitled to receive benefits or profits from a will, trust, insurance policy, or other arrangements designed to distribute assets.