Which one of the following is usually performed only at the end of a company's annual accounting period?
A) Preparing financial statements
B) Journalizing and posting adjusting entries
C) Journalizing and posting closing entries
D) Preparing an adjusted trial balance

Question

Quizplus · Accepted Answer

Closing entries are typically performed at the end of a company's annual accounting period to close out temporary accounts such as revenue and expenses and transfer their balances to the retained earnings account. Preparing financial statements, journalizing and posting adjusting entries, and preparing an adjusted trial balance may be done earlier in the accounting cycle.

Which One of the Following Is Usually Performed Only at the End