Ask Question
BusinessBusiness
6 December, 05:44

The purpose of making closing entries is to: Select one: a. Reset the temporary accounts and update retained earnings. b. Enable the accountant to prepare financial statements at the end of the accounting period. c. Establish new balances in the balance sheet accounts. d. Reduce the number of expense accounts.

+4
Answers (1)
  1. 6 December, 08:09
    0
    A. Reset the temporary accounts and update retained earnings.

    Explanation:

    This is a performed by an organisation in form of transferring data of financial values from temporary accounts and its is been moved to the permanent account. Amidst these, the temporary account is said to balanced in such a way to be zero; because when not done so, the remaining data from the temporary account will be moved to the permanent account.

    Process involved in this includes: Closing summaries that belong to income accounts and move to income summary. Also all expense accounts to income summary.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The purpose of making closing entries is to: Select one: a. Reset the temporary accounts and update retained earnings. b. Enable the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Farmer Joe is planning to purchase a new hog farm. He anticipates making $20,000 the first year, $25,000 the second year and $30,000 the third year. The farm is currently listed for sale at $200,000.
Answers (1)
A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on the S&P index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to achieve the following.
Answers (1)
On November 1, Bahama Cruise Lines borrows $4 million and issues a six-month, 6% note payable. Interest is payable at maturity.
Answers (1)
Which method calculates operating cash flows by adjusting the income statement on a line-by-line basis? a. Indirect method b. Direct method c. Discounted cash flow method d. Income method e. None of these.
Answers (2)
20. a. U. S. GDP is approximately $18 trillion and the U. S. population is approximately 320 million. If GDP were divided equally among the US population what would each person get?
Answers (1)
New Questions in Business
Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound option represents 31,250 units. Assume that at the time of the purchase, the spot rate of the pound is $1.
Answers (1)
In January the company produced 4,400 units using 10,180 pounds of the direct material and 2,160 direct labor-hours. During the month, the company purchased 10,750 pounds of the direct material at a cost of $76,630.
Answers (1)
The business judgment rule has been replaced by good faith statutes in most states. True or False
Answers (1)
Replace present refrigerators with similar refrigerators at a cost of $20 x 106. Option 2. Replace present refrigerators with lake-source cooling at a cost of $50 x 106. However, the lake-source cooling would save 1.
Answers (1)
For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales;
Answers (1)
Home » Business » The purpose of making closing entries is to: Select one: a. Reset the temporary accounts and update retained earnings. b. Enable the accountant to prepare financial statements at the end of the accounting period. c.
Sign Up Forgot Password?