If a company plans to continue business into the future, closing entries are not required.

Name: If a company plans to continue business into the future, closing entries are not required.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Closing entries are required at the end of every accounting period, regardless of whether a company plans to continue business in the future. The purpose of closing entries is to transfer the balances of temporary accounts to the permanent accounts and to prepare the accounts for the next accounting period.

If a Company Plans to Continue Business into the Future