Explain Why Temporary Accounts Are Closed Each Period

question 42

Essay

Explain why temporary accounts are closed each period.

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Definitions:

Personal Communication

Direct exchange of information or messages between two or more individuals through verbal or non-verbal means.

Mutually Beneficial

A situation or agreement that provides advantages to all parties involved.

Promotional Allowances

Financial incentives provided to retailers or distributors to support the marketing and sales of a product.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically summarized as product, price, place, and promotion.