Question

Closing entries are journalized and posted ________. A) throughout the accounting period B) before posting the adjusting entries C) after preparing the post-closing trial balance D) after preparing the financial statements

Answer 1

Answer:

D) after preparing the financial statements.

Explanation:

A closing entry in financial accounting is a journal entry of retained earnings made at the end of the accounting period to shift data (balances) from temporary accounts into permanent accounts.

For example, the expenses, revenue and dividends paid accounts are moved from the temporary accounts into the permanent account.

Closing entries are journalized and posted after preparing the financial statements. They are usually posted once in a year, mainly at the end of the year after preparing the financial statements.