Closing the Temporary Accounts at the End of Each Accounting

question 275

Multiple Choice

Closing the temporary accounts at the end of each accounting period does all of the following except:

• A)Serves to transfer the effects of these accounts to the retained earnings account on the balance sheet.
• B)Prepares the dividends account for use in the next period.
• C)Brings the revenue and expense accounts to zero balances.
• D)Has no effect on the retained earnings account.
• E)Causes retained earnings to reflect increases from revenues and decreases from expenses and dividends.

Comprehend the accounting methods (deferred contribution and restricted fund method) for contributions and investment income in not-for-profit organizations.

Recognize how donated goods and capital assets should be accounted for in financial statements.

Understand how endowment contributions and their investment income are presented and used within financial statements.

Recognize the financial reporting requirements and options available to Canadian private not-for-profit organizations.