Which of the Following Is Not True About Closing Entries

question 164

Multiple Choice

Which of the following is not true about closing entries?

• A)There are two closing entries that update the retained earnings account.
• B)The closing entries are dated the last day of the accounting 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:

Rules and Procedures

Established guidelines and systematic methods designed to organize and standardize actions within an organization or activity.

Personal in Nature

Refers to something that is intended for or affects an individual in a private, intimate, or personal capacity.

Assignment

The transfer of rights or property from one party to another.

Creditor Beneficiaries

A creditor beneficiary is a third party that benefits from a contract wherein the promisor agrees to pay the promisee's debt to the third party.