The Purpose of Closing Entries Is to Transfer

question 77

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:

Calculator

A calculator is an electronic device or software used for performing mathematical calculations.

Evaluate

To calculate or ascertain the numerical value or result of an expression or function.

Properties

The fundamental rules and characteristics that define mathematical operations, such as commutative, associative, and distributive properties.

Logarithms

The inverse operation to exponentiation, indicating the power to which a base number must be raised to obtain another number.