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:

U.S. Households

Pertains to living units in the United States where individuals or groups of people reside, commonly forming a family or household unit.

1970

A year marked by significant global and national events, considered part of the late 20th century historical context.

Dual-Income Families

Households in which both partners earn income from employment, becoming increasingly common in modern societies.

Paid Family Leave

An employee benefit that provides paid time off work to care for a family member or for childbirth or adoption.