The Closing Process Is Necessary in Order To

question 145

Multiple Choice

The closing process is necessary in order to:

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

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Definitions:

Exclusively By Homemakers

Pertaining solely to individuals, typically women, who manage the household and do not engage in employment outside the home.

Cared For By Others

Being in a situation where one's needs, either due to age, illness, or disability, are attended to by someone else.

Role Strain

The stress or tension experienced by an individual when conflicting demands are made on their role in a social setting.

Effective Discipline

Methods and strategies used to teach children right from wrong, helping them to learn acceptable behavior and understand consequences.