Which of the Following Statements About Closing Entries Is Correct

question 20

Multiple Choice

Which of the following statements about closing entries is correct?

• A) The profit or loss summary account is used regularly when processing transactions for sales and expenses.
• B) Computerised accounting systems have eliminated the need to close off the income and expense accounts.
• C) Closing entries are made at the end of each accounting period whatever its length.
• D) Closing entries are only made at the end of the accounting year.

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Definitions:

Valve

A device that regulates, directs or controls the flow of a fluid by opening, closing, or partially obstructing various passageways.

Automatic Functions

Features or operations within a device, system, or vehicle that operate without manual intervention, often based on specific conditions or triggers.

Main Pressure

The primary pressure within a system, such as the oil pressure in an engine or the hydraulic fluid pressure in machinery, vital for proper operation.

Pressure Relief Valve

A safety device designed to open and release excess pressure from a system, preventing potential damage or failure.