MCQ Practice

Which of the following is true regarding closing entries?

Subject: AccountingTopic: Accounting
A

They must be followed by reversing entries

B

They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account

C

They must be made after the reversing entries but before the adjusting entries

D

They must be made after the adjusting entries but before the reversing entries

Correct Answer: D