FedEx Chose Memphis, Tennessee, as Its U

question 21

Multiple Choice

FedEx chose Memphis, Tennessee, as its U.S. hub because

• A) the city is in the centre of the U.S., geographically.
• B) the airport has relatively few hours of bad weather closures.
• C) it needed a means to reach cities to which it did not have direct flights.
• D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling.
• E) All of the above are true.

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Definitions:

Closing Entries

At the end of an accounting cycle, transactions are recorded to shift balances from provisional accounts to lasting accounts.

Post-closing Trial Balance

A summary of all account balances after closing entries are made, used to check the balance of debits and credits.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used in the preparation of financial statements.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.