Which of the Following Does Not Occur During the Closing

question 99

Multiple Choice

Which of the following does not occur during the closing process?

• A)Journal entries are made to return the balance in all nominal accounts to zero.
• B)Journal entries are made to transfer the net income or loss to retained earnings.
• C)Journal entries are made to return the balance in all real accounts to zero.
• D)Journal entries are made to transfer the dividends to retained earnings.

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Investment Accelerator

An economic theory suggesting that an increase in national or private investment spending stimulates overall economic growth, potentially leading to further increases in investment.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Government Expenditures

The total amount spent by the government for its operations, public services, and social welfare programs.