One purpose of closing entries is to give zero balances to
A) asset and liability accounts.
B) liability and capital accounts.
C) revenue and expense accounts.
D) expense and capital accounts.

Question

Quizplus · Accepted Answer

The purpose of closing entries is to transfer the balances of temporary accounts (revenue and expense accounts) to the permanent capital account. As a result, revenue and expense accounts should have a zero balance at the end of the accounting period to accurately reflect the net income or loss for the period. Asset and liability accounts are not closed; their balances carry over to the next accounting period.

One Purpose of Closing Entries Is to Give Zero Balances