Which of the Following Is Not True About Closing Entries

question 91

Multiple Choice

Which of the following is not true about closing entries?

• A) There are four closing entries that update the stockholders' equity account.
• B) After the second closing entry, the income summary account is equal to the net income or loss for the period.
• C) All real accounts are closed at the end of the period.
• D) By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly.

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Definitions:

Louis

Refers to several monarchs of France, the most notable being Louis XIV, known as the Sun King, who ruled for 72 years.

Clark

A surname that could refer to various individuals in history, without additional context it's not specific to a single figure.

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Indigenous groups in North America that were often in competition or conflict with each other over resources, territory, or political influence.

Great Plains

A broad expanse of flat land, much of it covered in prairie, steppe, and grassland, that lies west of the Mississippi River tallgrass prairie in the United States and east of the Rocky Mountains.