Formal Closing Entries Ultimately Will Affect

question 71

Multiple Choice

Formal closing entries ultimately will affect

• A) Common Stock.
• B) total liabilities.
• C) Retained Earnings.
• D) total assets.

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Definitions:

Receivables

Short-term amounts due to a company from its customers, typically from sales of goods or services on credit.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods or materials a business has in stock, potentially for sale or production.

Outlived Usefulness

Refers to an asset or item that has exceeded its functional or strategic value to an organization or individual.