Assume that a company has prepared and posted its closing entries. Which of the following statements is true?
A. Closing entries are recorded in the ledger after adjusting entries.
B. Closing entries are made to transfer net income or loss to the Retained Earnings account.
C. Closing entries are optional and may be omitted if the company wishes to keep its financial records open.
D. Closing entries are typically recorded at the beginning of the accounting period.