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:

Economic Development

The process by which the overall health, well-being, and academic level of the general population of a society improves through the growth of the economy.

Harmful Health

A condition or state where health is adversely affected, typically used to describe effects or outcomes that are detrimental to an individual's well-being.

Environmental Effects

Impacts on the natural world due to human activity or natural processes, often evaluated in terms of changes to ecosystems, climate, and biodiversity.

Tradable Environmental Permits

Market-based instruments allowing for the buying and selling of pollution allowances, aiming to reduce harmful emissions cost-effectively.