Closing entries are made
A) in order to terminate the business as an operating entity.
B) so that all assets, liabilities, and stockholders' equity accounts will have zero balances when the next accounting period starts.
C) in order to transfer net income (or loss) and dividends to the retained earnings account.
D) so that financial statements can be prepared.
Correct Answer:
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Q10: If a company utilizes reversing entries, they
Q11: Under IFRS and under GAAP, current assets
Q12: After closing entries have been journalized and
Q13: A liability is classified as a current
Q14: If the total debit column exceeds the
Q16: After closing entries are posted, the balance
Q17: A post-closing trial balance should be prepared
A)before
Q18: Correcting entries
A)always affect at least one balance
Q19: The following information is for Bright Eyes
Q20: The most important information needed to determine
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