Temporary accounts are closed at what stage of the accounting process? Multiple Choice At the time...

Temporary accounts are closed at what stage of the accounting process?

Multiple Choice

At the time that adjustments are made.
After adjustments are made and before the income statement is prepared.
After the income statement and the statement of retained earnings are prepared, but before the balance sheet is prepared.
As the last journal entries at the end of each accounting year.

Solutions

Expert Solution

Answer: As the last journal entries at the end of each accounting Period

Temporary Accounts will close before the Adjustments. As the Lase journal entries of the Accounting Period. Periodically the Nominal accounts (Revenue, expense accounts) are closed with the entry of the lase transaction of that Period.

ekkarill92 answered 1 year ago

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