Final answer:
In closing the books, all temporary accounts, which include revenue, expenses, and withdrawals/dividends, are closed. Permanent accounts like assets, liabilities, and equity are not closed but carried forward. The statement is therefore true.
Step-by-step explanation:
In closing the books, it is indeed true that all temporary accounts are closed. Temporary accounts typically include revenue, expense, and withdrawal accounts (like dividends for corporations) which are closed to the owner's capital account or retained earnings to prepare the company's financial statements for the new accounting period.
Permanent accounts, such as assets, liabilities, and equity, are not closed at the end of the accounting period. These accounts carry their ending balance into the next period and are not reset each year.
Therefore, the statement "In closing the books, are all temporary accounts closed?" can be considered true. As part of this process, a "closing entry" is made for each temporary account to reset its balance to zero after transferring its balance to the permanent accounts.