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:

Smaller Tasks

Breaking down a large project into more manageable, bite-sized pieces.

Project Outline

A structured framework for a project that details its main points, steps, or components, usually done in the initial stages of planning.

Efficiency Versus Effectiveness

Efficiency refers to accomplishing tasks with minimal waste of resources, while effectiveness is about achieving the desired outcome or result.

Course Work

Refers to the set of assignments, tests, and projects that a student is required to complete as part of an academic course.