Accounting Entries Made at the End of an Accounting Year

question 3

Multiple Choice

Accounting entries made at the end of an accounting year to reduce expense and income accounts to zero are called:

• A) adjusting entries.
• B) correcting entries.
• C) end of period entries.
• D) closing entries.

Grasp the concept of process cost accounting system and its uses.

Identify the key components and purpose of a process cost summary.

Understand the characteristics of process manufacturing and its operational focus.

Comprehend the accounting procedures involved in process costing, including the calculation of equivalent units.

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Definitions:

Annual Pension Benefit

The amount of money an individual receives annually from their retirement plan after retiring.

Variable Component

A cost or expense that changes in proportion to changes in a business’s activity level.

Payroll System

A system used by companies to organize, calculate, and process payments to employees for their services.

Payroll Tax Expense

Payroll Tax Expense represents the taxes that an employer is liable to pay based on the wages and salaries of employees, including social security, Medicare, and unemployment taxes.