Answered: Closing entries transfer the balances…

Business

Accounting

Closing entries transfer the balances of the permanent accounts to the temporary accounts. Select one: True False

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 4.16C

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Closing entries transfer the balances of the permanent accounts to the temporary accounts.

Select one:

True

False

Expert Solution

Step 1

The permanent accounts will usually appear in the post-closing trial balance. The temporary account Revenue & Expenses will not appear in the post-closing trial balance

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