In regards to a company using a computerized accounting system, which of the following statements is incorrect?
A) Closing entries are completed in a matter of seconds.
B) The accountant must manually prepare the closing entries.
C) The software identifies the temporary accounts.
D) The Retained Earnings balance is up-to-date.

Question

Quizplus · Accepted Answer

The statement that the accountant must manually prepare the closing entries using a computerized accounting system is incorrect. The software can automatically prepare the closing entries based on the identified temporary accounts.

In Regards to a Company Using a Computerized Accounting System