Can you please whether the following statements about accounting and closing entries are true or false? 1. Closing entries are necessary if the business plans to continue operating in the future and issue financial statements each year.2. The owner's drawings account is closed to the Income Summary account in order to properlydetermine Profit (or loss) for the period.3. After closing entries have been journalized and posted, all temporary accounts in the ledgershould have zero balances.4. Cash is a temporary account and it should be zero after all closing entries have been posted.5. Closing entries are an optional part of the accounting cycle.6. Reversing Entries are an optional part of the accounting cycle.7. The owner's drawings account is a permanent account whose balance is carried forward to thenext accounting period.8. Closing entries are journalized after adjusting entries have been journalized.9. After the closing entries are posted to the accounts, a trial balance will show balances only inthe Balance Sheet Accounts.10. The final step in the accounting process is the pre-closing trial balance.11. A company has only one accounting cycle over its economic existence.12. The accounting cycle begins at the start of a new accounting period.13. Correcting entries are made any time an error is discovered even though it may not be at theend of an accounting period.14. Current assets are normally listed in the balance sheet in order of permanency.15. Under International Financial Reporting Standards, current assets may be shown after noncurrent assets on the Balance Sheet.16. Another name for Balance Sheet is the Statement of Financial Position.17. All Canadian companies must follow the new International Financial Reporting Standards.18. Cash and office supplies are both classified as current assets.19. Long-term investments would appear in the property, plant, and equipment section of thebalance sheet.20. A liability is classified as a current liability if it is to be settled within one year from the balancesheet date or in the company's normal operating cycle.21. Common Canadian practice shows current assets as the first items listed on a classifiedbalance sheet.22. The current ratio is the ratio of current liabilities divided by current assets.23. Abbott Manufacturing Company's current ratio is 2:1. The company has $50,000 in currentliabilities; current assets must be $25,000.24. The difference between current assets and current liabilities is called working capital.25. The acid-test ratio is a measure of a company's long term liquidity.26. Drawings will appear in the balance sheet debit column of a work sheet.27. If a company has a loss in the period, the amount of the loss will appear in the incomestatement credit column and the balance sheet debit column of the work sheet.28. If total credits in the income statement columns of a work sheet exceed total debits, thecompany has profit.29. It is not necessary to prepare formal financial statements if a work sheet has been prepared because financial position and profit are shown on the work sheet.  

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[The limits of the eNotes format prohibits discussion of all 29 True/False questions, but the following should help on the topic of closing entries.]

1. Closing entries are necessary if the business plans to continue operating in the future and issue financial statements each year.

Closing entries are prepared at the end of the accounting cycle so that the temporary account can be zeroed out to be ready for the next accounting cycle and so that the balances in revenue and dividends can be transferred to the permanent account.

Your statement asserts that closing accounts are necessary to the operation of the business and to the issuance of annual financial statements.

In that closing statements transfer accounting cycle information on revenue and dividends from temporary accounts to permanent accounts and in that they facilitate calculation of actual revenue income and dividend payments, then it might be said that closing entries are necessary to future operations and the issuance of financial...

(The entire section contains 988 words.)

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