BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The closing process resets, ____, ____ and ____ account balances to zero at the end of every account period.
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Revenue
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Expense
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Withdrawals
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Equity
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Explanation:
Detailed explanation-1: -The purpose of the closing entry is to reset the temporary account balances to zero on the general ledger, the record-keeping system for a company’s financial data. Temporary accounts are used to record accounting activity during a specific period.
Detailed explanation-2: -The closing process reduces revenue, expense, and dividends account balances (temporary accounts) to zero so they are ready to receive data for the next accounting period.
Detailed explanation-3: -Include revenue, expense, and gain and loss accounts. Are closed at the end of each period. Reset to a balance of zero at the beginning of a period.
There is 1 question to complete.