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.

---

Definitions:

Architect

A professional who plans, designs, and oversees the construction of buildings, ensuring both function and aesthetics.

Western Abstract Expressionism

A post-World War II art movement in American painting, characterized by spontaneous, automatic, or subconscious creation, emphasizing freedom of expression.

Chinese Literati Painting

A style of painting associated with scholarly gentlemen in China, focusing on personal expression and themes of nature, using brushwork that emphasizes spontaneity.

Income Distribution

The way in which total income is divided among the members of a society, impacting economic inequality and living standards.