Which of the Following Describes the Purpose(s)of Closing Entries

question 31

Multiple Choice

Which of the following describes the purpose(s) of closing entries?

• A)Adjust the balances of asset and liability accounts for unrecorded activity during the period.
• B)Transfer the balances of temporary accounts to common stock.
• C)Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.
• D)Both b and c.

---

Definitions:

Global Leadership Skills

The ability to exercise effective leadership in a variety of countries.

Societal Hierarchy

A structured ranking within a society where individuals or groups are placed at various levels based on status, power, or authority.

Power Distance

The degree to which less powerful members of an organization or society accept and expect power to be distributed unequally.

Cultural Intelligence

The ability to understand, respect, and effectively interact with people from diverse cultural backgrounds.