The Purpose of Making Closing Entries Is To

question 47

Multiple Choice

The purpose of making closing entries is to:

• A)Prepare revenue and expense accounts for the recording of the next period's revenue and expenses.
• B)Enable the accountant to transfer the balances from all permanent accounts to the Income Summary account.
• C)Establish new balances in the balance sheet accounts.
• D)Reduce the number of expense accounts.

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Definitions:

Sensory Receptors

Specialized cells or structures that detect external or internal environment stimuli and convert them into electrical impulses.

Pacinian Corpuscle

A type of nerve ending in the skin that detects pressure and vibration.

Free Nerve Endings

Sensory nerve fibers that extend into the tissues and open on the surface or just below, responsible for sensing pain, temperature, and touch.

Sensory Receptor

Specialized cells or cell parts that detect external or internal stimuli and transmit signals to sensory neurons.