18. Which of the following statements best describes the purpose of closing entries?

To complete the record of various transactions that were started in a prior period.

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.

To faciliate posting and taking a trial balance.

To determine the amount of net income or net loss for the following period.

17. The third level of the conceptual framework does not include

principles.

assumptions.

elements.

constraint

16.Which of the following research and development expenditures should be capitalized and depreciated?

Engineering costs incurred to advance the new product to a production stage

Acquisition of machinery that can also be used for future R&D projects

Cost of marketing research to promote a new product

Material, labor, and overhead costs incurred in developing a new product