Closing Entries Refer To

question 60

Multiple Choice

Closing entries refer to:

• A) establishing zero balances in all ledger accounts.
• B) establishing a zero balance in the cash at bank account.
• C) establishing zero balances in the balance sheet accounts.
• D) transferring income and expense account balances to the profit or loss summary account, which is then closed to the equity account.

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Definitions:

Biology

The science that studies living organisms and their interactions with one another and their environments.

Environment

The sum of all external conditions and influences affecting the life and development of an organism, encompassing natural, social, and built factors.

Organized Responses

Coordinated reactions by organisms or cells to internal or external stimuli.

Developing Organism

An organism in the stages of growth and development, evolving from early formation to maturity.