Which of the Following Statements Is True

question 234

Multiple Choice

Which of the following statements is true?

• A)Retained earnings must be closed each accounting period.
• B)A post-closing trial balance should include only permanent accounts.
• C)Information on the work sheet can be used in place of preparing financial statements.
• D)By using a work sheet to prepare adjusting entries,you need not post these entries to the ledger accounts
• E)Closing entries are only necessary if errors have been made.

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Definitions:

Communication

The exchange of information or ideas between individuals or groups using spoken words, written language, or other symbols.

Systems Theory

An interdisciplinary theory that studies complex systems in nature, society, and science, analyzing how various parts interrelate and how systems work over time.

Boundaries

Limits or borders that define acceptable behavior and responsibilities in relationships or activities.

Subordinate Systems

Systems that operate under the guidance or control of a higher-order system or authority.