The Closing Process Is Necessary in Order To

question 104

Multiple Choice

The closing process is necessary in order to:

• A)Calculate net income or net loss for an accounting period.
• B)Ensure that all permanent accounts are closed to zero at the end of each accounting period.
• C)Ensure that the company complies with state laws.
• D)Ensure that net income or net loss and dividends for the period are closed into the retained earnings account.
• E)Ensure that management is aware of how well the company is operating.

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Definitions:

INFP

A personality type in the Myers-Briggs Type Indicator (MBTI) characterized by introversion, intuition, feeling, and perceiving.

Work From Home

A work arrangement in which employees perform their job duties from a remote location, usually their home, rather than a centralized office.

Extroversion

A personality trait characterized by outgoingness, high energy, and a preference for social interaction and stimulation.

High Degree

A level of qualification, status, or intensity that is considerably above average.