The Purpose of Closing Entries Is to Transfer

question 12

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.

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Definitions:

Slaves

Individuals forced into servitude, deprived of personal freedom and the right to own property, often under harsh conditions.

Freedom

The condition or right of being able or allowed to do, say, think, or pursue life activities without undue restraint or oppression; it is a fundamental human right and a cornerstone of democratic societies.

Frederick Douglass

An African American social reformer, abolitionist, orator, writer, and statesman who after escaping from slavery in Maryland, became a leader of the abolitionist movement.

Military Service

The act of serving in the armed forces of a country, either voluntarily or through conscription.