BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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RECORDING IN JOURNAL, ADJUSTING ENTRIES, ANALYZE DOCUMENTS
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ADJUSTING ENTRIES, FINANCIAL STATEMENTS, CLOSING ENTRIES
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POSTING TO LEDGER, CLOSING ENTRIES, ADJUSTING ENTRIES
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POST CLOSING TRIAL BALANCE, RECORDING IN JOURNAL, FINANCIAL STATEMENTS
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Detailed explanation-1: -First, adjusting entries are recorded at the end of each month, while closing entries are recorded at the end of the fiscal year. And second, adjusting entries modify accounts to bring them into compliance with an accounting framework, while closing balances clear out temporary accounts entirely.
Detailed explanation-2: -The correct order for closing accounts is: revenue, expenses, income summary, withdrawals.
Detailed explanation-3: -Examples of Closing Entries The closing of the income statement accounts (revenues, expenses, gains, losses) by transferring their balances to the owner’s capital account or the corporation’s retained earnings account. This is done after the company’s financial statements for the year have been prepared.