Closing the Temporary Accounts at the End of Each Accounting

question 7

Multiple Choice

Closing the temporary accounts at the end of each accounting period does all of the following except:

• A) Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet.
• B) Prepares the withdrawals account for use in the next period.
• C) Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.
• D) Brings the revenue and expense accounts to zero balances.
• E) Has no effect on the owner's capital account.

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Definitions:

F-distribution

A statistical distribution used in the analysis of variance, among other tests, characterized by two parameters that determine its shape.

Skewed to the Right

Describes a distribution where the tail is longer on the right side, indicating that there are a number of outliers higher than the mode.

Test Statistic

A statistic derived from sample data in a hypothesis test that is utilized to determine if the null hypothesis should be discarded.

Rejection Region

The range of values for which the null hypothesis is not considered probable and is rejected in hypothesis testing.