Question

Which of the following statements about the accounting cycle is NOT correct:_______.

A. Transactions are journalized before they are posted
B. Financial statements are prepared based on the balances in the adjusted trial balance
C. The unadjusted trial balance is prepared before the adjusted trial balance
D. Closing entries are recorded and posted throughout each accounting period

Answer 1

Answer: D. Closing entries are recorded and posted throughout each accounting period

Step-by-step explanation:

Closing entries are not recorded and posted throughout each accounting period but rather are only recorded and posted at the end of the Accounting period as a way to close out temporary accounts by transferring the balance in them to permanent accounts.

The temporary accounts to be closed off at the end of the period are: the Revenue account, Expense account, Income summary account and the Dividends account.