A double rule (double underline) applied to accounts in the ledger during the closing process implies that
A) the account is a temporary account.
B) the account is a balance sheet account.
C) the account balance is not zero.
D) a mistake has been made, since double ruling is prescribed.

Question

Quizplus · Accepted Answer

Double ruling a ledger account during the closing process indicates that the account is a temporary account (such as an income or expense account) that has been closed out for the period. This is a common practice in accounting to distinguish temporary accounts from permanent balance sheet accounts, which are not double ruled. Furthermore, double ruling is not an error, but rather a proper accounting procedure.

A Double Rule (Double Underline) Applied to Accounts in the Ledger