Which Statement Relating to Closing Entries Is Incorrect

question 56

Multiple Choice

Which statement relating to closing entries is incorrect?

• A) Closing entries are made each time interim financial reports are prepared.
• B) Closing entries are only made once a year.
• C) The need for closing entries arises from the accounting period assumption.
• D) The closing process is simple with a computerised accounting system.

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Definitions:

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A plan designed for selling one's stake in a business or ending an investment, often to realize a profit or minimize losses.

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Individuals who fund early-stage companies and startups showing strong potential for expansion in return for ownership stakes.

Threshold Concept

Fundamental ideas in a discipline that, once understood, transform a learner's perspective and comprehension of that field.