Closing Entries Are Required

question 6

Multiple Choice

Closing entries are required:

• A) if management has decided to cease operating the business.
• B) only if the company adheres to the accrual method of accounting.
• C) if a company's bookkeeper forgets to prepare reversing entries.
• D) if the temporary accounts are to reflect correct amounts for each accounting period.
• E) in order to satisfy the Internal Revenue Service.

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