Which statement relating to closing entries is incorrect?
A) The closing process is simple with a computerised accounting system.
B) Closing entries are only made once a year.
C) Closing entries are made each time a trial balance is prepared.
D) The need for closing entries arises from the accounting period assumption.

Question

Quizplus · Accepted Answer

Closing entries are not made each time a trial balance is prepared. They are typically made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, not every time a trial balance is prepared.

Which Statement Relating to Closing Entries Is Incorrect