Question

(True) or (False)? The closing process takes place immediately before the preparation of the income statement. Group of answer choices (True) (False)

Answer 1

Answer: False

Step-by-step explanation:

The closing process is the process that is fine when a particular accounting period ends and when the financial statement for the company have been prepared.

At the closing process, the balance in the temporary account of the company will be reset to zero. The statement in the question is false as the closing process takes place immediately after the income statement has been prepared and not before the income statement is prepared.