Closing Entries

question 94

Multiple Choice

Closing entries:

• A)are made at the beginning of each accounting period.
• B)prepare the accounts for the next period's transactions.
• C)cannot be done using a computer.
• D)are the same as adjusting entries.

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Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Opportunity Cost

represents the value of the best alternative foregone as a result of making a particular choice.

Accounting Costs

Represent the explicit costs or direct financial expenditures associated with the operations of a business.

Monetary Costs

The financial expenses incurred in the acquisition of goods, services, or assets, measured in units of currency.