The Purpose of Closing Entries Is to Transfer

question 34

Multiple Choice

The purpose of closing entries is to transfer:

• A)Accounts Receivable to Retained Earnings when an account is fully paid.
• B)Balances in temporary accounts to a permanent account.
• C)Inventory to Cost of Goods Sold when merchandise is sold.
• D)Assets and liabilities when operations are discontinued.

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Definitions:

Solenoid

A type of electromagnet where the core is moved by the magnetic field when electrical current flows through the coil surrounding it, often used to control valves or actuators.

Actuator

An output device normally connected to an output module. Examples are an air valve and cylinder.

Electrical Signal

A form of signal that uses electrical currents or voltages to relay information across circuits or systems.

Mechanical Movement

The motion or action of mechanical parts or systems, often driven by motors or manual force.