Which of the Following Describes the Purpose(s) of Closing Entries

question 126

Multiple Choice

Which of the following describes the purpose(s) of closing entries?

• A) Adjust the balances of asset and liability accounts for unrecorded activity during the period.
• B) Transfer the balances of temporary accounts to common stock.
• C) Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.
• D) Both b and c.

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Definitions:

Measurement Characterizes

The process of defining or describing the properties or attributes of variables through the use of numbers or other symbols.

Effectiveness

The degree to which something achieves its intended outcomes or goals in real-world conditions.

Numeric Properties

Characteristics or attributes of numbers or datasets, such as mean, median, mode, range, and standard deviation.

Scales Measurement

A method used in research to assign numerical values to variables for the purpose of quantitative analysis.