Closing entries
A) are posted to the general ledger.
B) are done to update Cash.
C) can be done before adjusting entries.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Closing entries are posted to the general ledger in order to update the accounts for the end of the accounting period. They are done after the adjusting entries and before the new accounting period begins. Closing entries do not involve Cash directly, so option B is incorrect. Option C is also incorrect as closing entries cannot be done before adjusting entries.

Closing Entries