Question

Test O more Tavoratore thanaTESTCON 1.45 Question 2 ( 2 Points 2 Points C Which if the following is NOT true about closing entries? A Closing entries move the balances of nominal accounts to the owner's capital account. Gold Chile B Closing entries are an optional step in the accounting cycle. C Closing entries are made later in the accounting cycle than adjusting entries. Lock Bro D Closing entries are made before the post-closing trial balance is prepared. Ad | Acrot Question 3 2 Points In the sequence of accounting cyce steps, which step follows the preparation of the adjusted trial balance? JZZP Note A Adjusting entries are journalized and posted. w 97 minutes remaining Submit sted

Answer 1

Your required answer is option B i.e. Closing entries are an optional step in accounting cycle.

Explanation:

Closing entries are prepared after prepration of trail balance and it transfer all nominal account balance into owner's capital account through Net Income.

Closing entries are not an optional option in accounting cycle it is mandatory in nature otherwise the balance of accounts will not be updated/correct and Nominal or temporary accounts will remain open.

Accounting cycle starts with source documents and ends with prepration of financial statements.

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