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.

Question

Quizplus · Accepted Answer

The Answer of 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.

Which of the Following Statements About Closing Entries Is True