Which of the Following Best Distinguishes Adjusting Entries from Closing

Multiple Choice

Which of the following best distinguishes adjusting entries from closing entries?

A) Adjusting entries involve only balance sheet accounts; closing entries involve only income statement accounts.
B) Closing entries cannot be journalized using information technology, while adjusting entries can.
C) Adjusting entries happen before preparing financial statements; closing entries occur after preparing financial statements.
D) In adjusting entries, debits must equal credits; in closing entries, debits should be greater than credits.