The Purpose of Making Closing Entries Is To

question 79

Multiple Choice

The purpose of making closing entries is to:

• A) Prepare revenue and expense accounts for the recording of the next period's revenue and expenses.
• B) Enable the accountant to prepare financial statements at the end of the accounting period.
• C) Establish new balances in the balance sheet accounts.
• D) Reduce the number of expense accounts.

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Definitions:

Price Cheeseburger

The amount of money required to purchase a cheeseburger in a given market or location.

Excess Demand

A situation in a market where the quantity demanded of a good or service surpasses the quantity supplied at the current price.

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.

DVD Players

Electronic devices designed to play discs using the Digital Versatile Disc (DVD) format, often used for movies and other digital content.