The Result of Closing Entries Is That Balances in All

question 65

Multiple Choice

The result of closing entries is that balances in all temporary accounts

• A)are adjusted to historical cost.
• B)include monthly depreciation.
• C)are adjusted to current market values.
• D)are adjusted to budgeted amounts.
• E)None of these answer choices are correct.

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Definitions:

Operating Income

Income generated from a company's primary business activities, excluding revenue and expenses from peripheral activities, interest, and taxes.

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, allowing it to be evaluated on its profit contributions and investment returns.

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in the operation of a business and not expected to be consumed or converted into cash in the short term.