Which of the following statements is not correct?
A)After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances.
B)A post-closing trial balance will not contain revenue and expense account balances.
C)Adjusting entries must be journalized and posted before the closing entries are journalized and posted.
D)At the end of each accounting period, asset and liability account balances are reduced to zero.

Question

Quizplus · Accepted Answer

The statement "At the end of each accounting period, asset and liability account balances are reduced to zero" is not correct. Asset and liability accounts are carried forward to the next accounting period and are not reduced to zero.

Which of the Following Statements Is Not Correct