Asked by Abhishek Prodduturi on Apr 25, 2024
Verified
Closing entries
A) need not be journalized if adjusting entries are prepared
B) need not be posted if the financial statements are prepared from the end-of-period spreadsheet
C) are not needed if adjusting entries are prepared
D) must be journalized and posted
Closing Entries
Journal entries made at the end of an accounting period to transfer temporary accounts’ balances to permanent ones, resetting the temporary accounts for the next period.
Journalized
The process of recording transactions in a company's journal, marking the first step in the accounting process.
End-Of-Period Spreadsheet
A financial statement prepared at the conclusion of an accounting period, summarizing the income, expenses, and adjustments to accounts.
- Acquire knowledge about the objective and methodology of finalizing entries in the context of the accounting cycle.
Verified Answer
SD
SHRISHTY DAYALApr 27, 2024
Final Answer :
D
Explanation :
Closing entries are necessary to close temporary accounts and transfer their balances to the appropriate permanent accounts. These entries must be journalized and posted to ensure that the accounts reflect the correct ending balances for the period.
Learning Objectives
- Acquire knowledge about the objective and methodology of finalizing entries in the context of the accounting cycle.