Which of the Following Statements Is True

question 96

Multiple Choice

Which of the following statements is true?

• A) A post-closing trial balance should include only permanent accounts.
• B) Closing entries are only necessary if errors have been made.
• C) By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.
• D) Owner's capital must be closed each accounting period.
• E) The work sheet can be substituted for preparing financial statements.

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Definitions:

Right of Survivorship

refers to a legal principle that, upon the death of one joint owner, their interest in certain types of property automatically passes to the surviving joint owner(s).

Sells Interest

The act of transferring one's ownership stake or financial interest in an entity or asset to another party.

Zoning Variance

Permission granted by a local government allowing a property to be used in a way that deviates from the strict application of zoning laws.

Commercial Space

Commercial Space generally refers to buildings or land intended for use in commerce or business activities, such as retail stores, offices, or factories.