The Purpose of Closing Entries Is to Reduce the Balance

question 63

True/False

The purpose of closing entries is to reduce the balance in the periodic accounts to zero and to compute net income for the period.

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Definitions:

Norms

Shared standards or rules that govern behaviors within a group or society, indicating what is considered appropriate or acceptable.

Morals

Principles or beliefs concerning what is right and wrong behavior, guiding individual conduct and decision-making.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity.

Socializing Agents

Entities or individuals that play a significant role in the process of teaching norms, customs, and ideologies within a society.