A double rule applied to accounts in the ledger during the closing process implies that
A) the account is an income statement account.
B) the account is a statement of financial position 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 is a process used to close income statement accounts during the accounting cycle's closing procedure. These accounts' balances must be moved to a retained earnings account, which is a statement of financial position account. As a result, alternative B can be invalidated. Furthermore, double ruling is permitted, and even necessary, during the closing mechanism. As a result, alternative D can be eliminated. Finally, the account balance is not a primary consideration when double ruling is employed, thus option C can be dismissed as well. Alternative A, which states that the account being double ruled is an income statement account, is the appropriate answer.

A Double Rule Applied to Accounts in the Ledger During