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.

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Definitions:

Money Supply

The comprehensive total of money assets accessible in an economy at a particular instance.

Aggregate Demand

The entire requirement for goods and services within an economy, valued at a fixed comprehensive price level during a set duration.

Short Run

In economics, a timeframe where at least one factor of production is considered fixed, limiting the firm's capacity to adjust fully to market changes.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.