Which of the Following Statements About Closing Entries Is True

question 54

Multiple Choice

Which of the following statements about closing entries is true?

• A) Closing entries are made at the end of each accounting period whatever its length.
• B) Closing entries are only made at the end of the accounting year.
• C) With computerised accounting systems there is no need to close off the expense and income accounts.
• D) The profit or loss summary account is used regularly when processing transactions for sales and expenses.

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Definitions:

Procedural Fairness

The requirement for legal and administrative decisions to be made following processes that are fair, proper, and established, ensuring individuals are treated justly.

Natural Justice

Legal principles which ensure fair treatment in judicial and administrative decisions, including the right to a fair hearing and the rule against bias.

Fair Treatment

The principle of dealing with others in a way that is right, equitable, and free from bias or favoritism.

Minimum Standards

The lowest acceptable limits set by regulation for various criteria, such as working conditions, product quality, or safety requirements.