Closing Entries

question 164

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)brings all asset account balances to zero.
• D)are the same as adjusting entries.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.

Unregulated Market

A market where economic activities are freely carried out without governmental intervention in terms of prices, production, and distribution.

Shortage

A situation where the demand for a product or service exceeds the supply available at a specific price.

Product

Any good, service, or idea that can be offered to a market to satisfy a want or need.