There Are Four Closing Entries

question 111

Multiple Choice

There are four closing entries. The first one is to close ____, the second one is to close ____, the third one is to close ____, and the last one is to close ____.

• A) Revenues, expenses, income summary, drawing account
• B) Expenses, assets, income summary, capital account
• C) Capital account, drawing account, income summary, assets
• D) Drawing account, income summary, expenses, revenues

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Definitions:

Competitive Price-Searcher

A market condition where firms actively seek to find the optimal price that balances profitability with consumer demand, typically in markets with differentiated products.

Long Run

A period of time in economics where all factors of production and costs are variable, and all adjustments to changes have been made.

Cabbage Patch Dolls

A line of soft sculptured dolls sold with birth certificates and adoption papers, popularized in the 1980s.

Christmas

An annual festival commemorating the birth of Jesus Christ, celebrated on December 25 by millions around the world.