Which of the Following Best Distinguishes Adjusting Entries from Closing

question 13

Multiple Choice

Which of the following best distinguishes adjusting entries from closing entries?

• A) Adjusting entries involve only balance sheet accounts; closing entries involve only income statement accounts.
• B) Closing entries cannot be journalized using information technology, while adjusting entries can.
• C) Adjusting entries happen before preparing financial statements; closing entries occur after preparing financial statements.
• D) In adjusting entries, debits must equal credits; in closing entries, debits should be greater than credits.

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