There Are Four Closing Entries

question 22

Multiple Choice

There are four closing entries. The first one is to close revenues, the second one is to close expenses, the third one is to close ____, and the last one is to close the ____.

• A) Income Summary; dividends account
• B) Income Summary; common stock account
• C) Income Summary; assets
• D) dividends account; Income Summary

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Definitions:

Long-Term Memory

A type of memory capable of storing information for an extended period, from hours to decades, including facts, experiences, and skills.

Magical Thinking

The tendency to believe that simply having thoughts about an event before it occurs can influence that event.

Person Perception

The process by which individuals form impressions and make judgments about other people's traits and characteristics based on available information.

Counterfactual Thinking

The process of mentally creating alternative versions of actual events to imagine what might have been.