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:

Branding Strategy

A plan that involves the creation of a unique identity and image for a product or company in the market, aiming to differentiate it from competitors and build a loyal customer base.

Empowerment

The process of becoming stronger and more confident, especially in controlling one's life and claiming one's rights.

Unilever

A global corporation specializing in consumer goods, known for its commitment to sustainability and ethical business practices.

Leveraging

The act of using something to maximum advantage, often referring to the strategic use of resources, such as capital or information, to amplify outcomes.