Which of the Following Correctly Describes the Closing Entry Process

question 6

Multiple Choice

Which of the following correctly describes the closing entry process?

• A)The closing process reduces the balances in the permanent accounts to zero at the end of each period.
• B)The closing entries are usually prepared prior to the adjusted trial balance.
• C)The closing process creates a zero balance in all temporary accounts at the end of each period.
• D)The closing process creates a zero balance at the end of each period for all accounts on the year-end trial balance.

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Definitions:

Exchange

The act of trading goods, services, currencies, or other instruments of value between parties.

Families

Families denote groups of individuals related by blood, marriage, or adoption, often living together and providing emotional and economic support to one another.

Specialization Of Labor

The practice of dividing labor into specific, narrowly defined tasks to increase efficiency and productivity.

Production

The process of creating goods or services using input resources like labor, materials, and technology.