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:

Social Intelligence

The ability to understand and manage interpersonal relationships and dynamics effectively.

Emotional Maturity

The ability to understand, manage, and appropriately express one's emotions, often seen as a critical attribute in effective leadership.

Need For Affiliation

A psychological drive that expresses the desire to be connected and form social bonds with others.

Internal Locus

The belief that one has control over their life events and outcomes rather than external forces.