With a manual accounting system,adjusting and closing entries:
A)are recorded in the cash payments journal.
B)are recorded in the general journal.
C)are not recorded when a business uses special journals.
D)are recorded in the cash receipts journal.

Question

Quizplus · Accepted Answer

Adjusting and closing entries are recorded in the general journal in a manual accounting system. This journal is used to record transactions that cannot be recorded in the specialized journals such as cash receipts or payments. Adjusting entries are made at the end of an accounting period to update accounts before preparing financial statements, while closing entries are made to transfer balances of temporary accounts to the permanent accounts at the end of a fiscal period.

With a Manual Accounting System,adjusting and Closing Entries