An Important Purpose of Closing Entries Is to

question 98

Multiple Choice

An important purpose of closing entries is to

• A) help in preparing financial statements.
• B) set real account balances to zero to begin the next period.
• C) set nominal account balances to zero to begin the next period.
• D) adjust the accounts in the ledger.

---

Definitions:

Free

Not under the control or in the power of another; able to act or be done as one wishes.

Construct An Argument

The process of logically assembling reasons, evidence, and facts to support a statement, proposition, or conclusion.

Opposing Argument

A statement or viewpoint that conflicts with or counters another argument or proposition.

Alternative Response

A different or non-traditional reaction or solution to a given situation or problem.