Which of the Following Statements About Closing Entries Is True

question 54

Multiple Choice

Which of the following statements about closing entries is true?

• A) Closing entries are made at the end of each accounting period whatever its length.
• B) Closing entries are only made at the end of the accounting year.
• C) With computerised accounting systems there is no need to close off the expense and income accounts.
• D) The profit or loss summary account is used regularly when processing transactions for sales and expenses.

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Definitions:

Physical

Pertaining to the material world or the body, as opposed to the mind or virtual processes.

Economic

Pertaining to the production, distribution, and consumption of goods and services, or the material welfare of human society.

Psychological Barrier

An emotional or mental resistance that inhibits a person from achieving a goal or performing an action.