Closing entries are needed at the end of the fiscal period to close all ledger accounts.

Name: Closing entries are needed at the end of the fiscal period to close all ledger accounts.
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Closing entries are needed at the end of the fiscal period to close temporary accounts (revenues, expenses, dividends/distributions) to retained earnings, not all ledger accounts. Permanent accounts (assets, liabilities, equity) are not closed.

Closing Entries Are Needed at the End of the Fiscal