Which of the Following Is Not True About Closing Entries

question 70

Multiple Choice

Which of the following is not true about closing entries?

• A) There are four closing entries that update the owner's 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:

Innovative Ideas

Refers to novel or original concepts, methods, or products that can potentially bring about significant improvements or changes.

Sponsorship And Support

Refers to the provision of financial, material, or emotional assistance to individuals or organizations, often to promote specific events, activities, or causes.

Managerial Practices

The methods, strategies, and techniques employed by managers to achieve organizational objectives and manage employee performance.

Human Resource Systems

The organized procedures and frameworks designed to manage an organization's workforce effectively.