Which of the Following Is Not True About Closing Entries

question 169

Multiple Choice

Which of the following is not true about closing entries?

• A) There are two closing entries that update the owner's equity account.
• B) After the first closing entry, the owner's capital account has been increased (decreased) by the amount of 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:

U.S. Net Exports

The value of goods and services exported by the United States minus the value of goods and services it imports, reflecting the country's trade balance.

U.S. Net Capital Outflow

The difference between the amount of U.S. assets bought by foreigners and the amount of foreign assets bought by Americans within a specific time period.

Chinese Currency

Refers to the official currency of China, primarily the Renminbi (RMB), with the yuan as the basic unit.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to more money leaving the country than coming in from foreign nations.