These are the entries that close out the temporary or nominal accountsSelect one:a.closing entriesb.financial statementsc.trial balanced.adjusting entries
Question
These are the entries that close out the temporary or nominal accountsSelect one:a.closing entriesb.financial statementsc.trial balanced.adjusting entries
Solution
The correct answer is a. closing entries. These are the entries that are used at the end of an accounting period to close out all the temporary accounts and transfer their balances into permanent accounts. Temporary or nominal accounts include revenue, expense, and dividend accounts which need to be reset to zero at the end of each accounting period to accurately track these items for the next period.
Similar Questions
It is the list of accounts with their balances after the closing entries are recorded and posted in the ledger.Select one:a.Nominal accounts or temporary accountsb.Post- closing Trial Balancec.Balance Sheet or Statement of Financial Positiond.Revenue and Expense summary or Income Summary or Profit and Loss Summary
The post-closing trial balance includes which of the following accounts?*a. Permanent (real) accountsb. Temporary (nominal) accountsc. Accounts shown in the income statementd. None of the above.
Adjusting and closing entries are prepared at the end of the accounting period.Select one:TrueFalse
Closing entries are prepared: aAt the end of the accounting period bTo clear all temporary accounts to zero. cAll of the above are correct. dTo update the Capital balance
Nominal accounts to zero balance.Select one:a.Accrued Incomeb.Closing entriesc.Prepaid Expensesd.Prepaid Expenses
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