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jenyasd209 [6]
3 years ago
13

Closing entries are made a. in order to transfer net income (or loss) and owner’s drawings to the owner’s capital account. b. so

that financial statements can be prepared. c. so that all assets, liabilities, and owner’s capital accounts will have zero balances when the next accounting period starts. d. in order to terminate the business as an operating entity.
Business
1 answer:
babymother [125]3 years ago
5 0

Answer:

The correct answer is letter "A": in order to transfer net income (or loss) and owner’s drawings to the owner’s capital account.

Explanation:

A Closing Entry is a journal entry after an accounting period has finished. It closes all the temporary accounts and transfers the details to either a permanent balance sheet or an account of an income statement. Temporary accounts include<em> revenues, expenses, </em>and <em>dividends </em>and must be closed at the end of the accounting year.

<em>The main objective of closing entries is to transfer the Net Income, whether positive or negative and the owner's withdrawals to the owner's equity account.</em>

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Consider the following statement about real options: Decision tree analysis is more commonly used in valuing securities than rea
maksim [4K]

Answer:

Flexibility option

Explanation:

False: It can be used equally for both.

Firms often have an option to vary inputs to the production or change the output from production. Such options are known as flexible production options.\  real option to expand.

7 0
4 years ago
Suppose people cannot tell for sure whether they will fall ill in any given year. High-risk people correctly perceive their chan
Crank

The expected annual medical expenses of a high-risk person is $3000 per year while that of a low-risk person is $1000 per year.

The expected annual medical expenses of a high-risk person will be calculated as:

= Probability of falling ill × Expenses in case of illness

= 30% × $10000

= 0.3 × $10000

= $3000

The expected annual medical expenses of a low-risk person will be calculated as:

= Probability of falling ill × Expenses in case of illness

= 10% × $10000

= 0.1 × $10000

= $1000

It should be noted that in a situation where the individuals are risk neutral, the low-risk persons will not buy insurance as only the high-risk individuals will be expected to buy<em> insurance.</em>

Read related link on:

brainly.com/question/25405387

5 0
2 years ago
Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new v
NARA [144]

Answer:

The total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.

Explanation:

Margin on selling vehicle = Average vehicle selling price * Margin = $23,700 * 11% = $2,607

Margin generated by 78% of people who return for service over 5 years = Number of times * Margin generated on each service = 10 * $103 = $1,030

Total estimated customer lifetime value (CLV) = Margin on selling vehicle + (Margin generated by 78% of people who return for service over 5 years * 78%) + (Margin generated by 226% of people who do not return for service over 5 years * 22%) = $2,607 + ($1,030 * 78%) + ($0 * 22%) = $3,410.40

Therefore, the total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.

6 0
3 years ago
What are institutional advertisements designed to promote
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To better show and explain a image, idea, and or organization for a business.

It is basically to help build a postitive image for your business you are running or trying to create

Hope this helps

7 0
3 years ago
The fed is often considered the bankers' bank because it:
miss Akunina [59]
Hello there,
[]_________________________________________________________[]

First of all this is a easy one! The "Federal Reserve" is considered the bankers' bank because it <span>holds bankers reserves, provides banks with currency and loans, and clears their checks. Therefore cannot be touched by civilians / citizens.
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3 years ago
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