The Closing Process Is Necessary in Order To

question 104

Multiple Choice

The closing process is necessary in order to:

• A)Calculate net income or net loss for an accounting period.
• B)Ensure that all permanent accounts are closed to zero at the end of each accounting period.
• C)Ensure that the company complies with state laws.
• D)Ensure that net income or net loss and dividends for the period are closed into the retained earnings account.
• E)Ensure that management is aware of how well the company is operating.

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Definitions:

Descartes

René Descartes was a French philosopher, mathematician, and scientist who is often referred to as the "Father of Modern Philosophy" for his contributions to the development of Western philosophy and mathematics.

Dominant Eye

The eye that provides a slightly greater degree of input to the visual cortex and is preferred over the other eye for certain visual tasks.

Flip-Flop

A term often used to describe a sudden reversal of opinion or policy, especially in a political context.

Participant

An individual who takes part in an activity or study, often used in the context of psychological experiments or surveys.