1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tamaranim1 [39]
2 years ago
12

Select the statement which best describes the primary purpose of closing entries a. To complete the recording of various transac

tions which are begun in one period and concluded in a later period b. To determine the amount of net income or net loss for the period c. To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period d. To facilitate adjusting entries
Business
1 answer:
ValentinkaMS [17]2 years ago
7 0

Answer: c. To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period.

Explanation:

Closing entries are the journal entries that are made at the end of an accounting period in order to be able to transfer temporary accounts to the permanent accounts.

The primary purpose of closing entries is to reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period.

Therefore, the correct option is C.

You might be interested in
Listed below are several transactions. For each transaction, indicate whether the ca financing, or noncash activity. Also, indic
mariarad [96]

Answer:

1. <u>Operating and Cash outflow:</u> Payment of employee salaries.

2. Investing and Cash inflow: Sale of land for cash. Investing

3. Operating and Cash outflow: Purchase of rent in advance.

4. Operating and Cash inflow: Collection of an account receivable.

5. Financing and Cash inflow: Issuance of common stock.

6. Operating and Cash outflow: Purchase of inventory

7. Investing and Cash inflow: Collection of notes receivable.

8. Operating and Cash outflow: Payment of income taxes.

9. Noncash activity, so no effect: Sale of equipment for a note receivable.

10. Financing and Cash inflow: Issuance of bonds.

11. Investing and Cash outflow: Loan to another firm.

12. Financing and Cash outflow: Payment of a long-term note payable.

13. Financing and Cash outflow: Purchase of treasury stock.

14. Operating and Cash outflow: Payment of an account payable.

15. Investing and Cash inflow: Sale of equipment for cash.

Explanation:

A statement of cash flow is a financial statement that gives the aggregate cash inflow and cash outflow in an organization during an accounting period. The three categories of statement of cash flows are investing activities, financing activities, and operating activities.

1. Investing activities are essentially the cash activities with respect to non-current assets such as sale of equipment for cash.

2. Financing activities refers to cash activities with respect to owners’ equity and non-current liabilities such as purchase of treasury stock.

3. Operating activities are mainly the cash activities with respect to net income such as payment of employee salaries.

8 0
2 years ago
Sara purchased a life insurance policy as an investment from her neighbor, Angela. Angela, the original policy holder had paid p
Pavlova-9 [17]

Answer:

$16,500

Explanation:

She invested = $12,000

Total money spent to acquire the policy = ($16,500 + $5000) = $21,500

Total money invested on policy = $21500 + $12000

Total money invested on policy = $33500

Money that sara got after angela died = $50,000

Therefore, the taxable proceed will be = $50,000 - $33,500 = $16,500

6 0
3 years ago
The "implicit debt" accompanying the Social Security and Medicare programs is:
Tom [10]

Answer: a. substantially greater than the national debt

Explanation:

8 0
2 years ago
A(n) ________ is a description of how the researchers will measure the variables of interest. theory hypothesis experimental pla
Mrrafil [7]

Answer:

OPERATIONAL DEFINITION

Explanation:

OPERATIONAL DEFINITION

It is referred to as part of any analysis. At the time of data collection, it provides a very crystal clear definition of the process of collecting data. It strengthened decision making process on validation of any data whether the data is correct or not. This is important because data that is not suited to the analysis can lead to error in result.

8 0
2 years ago
How would you explain the effect that the recessionary gap, or the effect that the inflationary gap would have on the definition
gulaghasi [49]
A recessionary gap happens when an economy is falling into a recession, which is defined as a lower real level of income, as measured by real GDP, then the full-employment level. An economic recession can happen in a number of ways, including a higher nominal exchange rate, which reduces net exports and domestic income, and a large reduction in consumer expenditure or investment due to a decrease in take-home pay by workers. 
5 0
3 years ago
Other questions:
  • G wholesalers who own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as __________
    10·1 answer
  • True or false: you should only create a slide presentation if you know that you will be presenting in a smart room.
    10·2 answers
  • Robin has moved to a new town during her sophomore year in high school. In order to find a new group of friends, she joins the s
    5·2 answers
  • The Crestar Company reported net income of $112,000 on 20,000 average outstanding common shares. Preferred dividends total $12,0
    12·1 answer
  • On a shopping​ trip, Sofia decided to buy a light blue coat that had a price tag of​ $79.95. When she brought the coat to the​ s
    6·1 answer
  • If aggregate supply is vertical, then which of the following statements must be true?
    6·1 answer
  • Which career would benefit from an apprenticeship?
    13·2 answers
  • I would like to cancel my subscription today, May 5,2021. Thank you.
    10·2 answers
  • Put the following statements in the correct order to summarise the sequence of events in moving from the short-run to the long-r
    7·1 answer
  • Capitalization of interest is adding accrued
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!