Statement concerning closing entries


Which of the following is not true about closing entries?

a) There are four closing entries that update the owner's equity account.

b) After the second closing entry, the income summary account is equal to the net income or (loss) for the period.

c) All real accounts are closed at the end of the period.

d) By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly.

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Accounting Basics: Statement concerning closing entries
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