Closing the Temporary Accounts at the End of Each Accounting

question 85

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 owner's capital account on the balance sheet.
• B) Prepares the withdrawals account for use in the next period.
• C) Gives the revenue and expense accounts zero balances.
• D) Has no effect on the owner's capital account.
• E) Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.

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Definitions:

Rail

A mode of transportation that involves the movement of goods or passengers on trains along a set of tracks.

Carrier

A company or individual that provides transportation services for goods or people.

Straight Bill Of Lading

A document issued by a carrier that specifies the goods being transported are to be delivered to the specified party, without endorsement.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.