Statement about closing entries


Which of the following is not true about closing entries?

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

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

c. There are four closing entries that update the retained earnings account.

d. All real accounts are closed at the end of the period.

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Accounting Basics: Statement about closing entries
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