Which of the following types of entries is used to reset the temporary accounts to zero and update the balance in the retained earnings?
A)Journal entries
B)Adjusting entries
C)Closing entries
D)Balancing entries

Question

Quizplus · Accepted Answer

Closing entries are used to reset the temporary accounts (e.g., revenue, expenses) to zero and transfer their balances to the retained earnings. This process updates the balance in the retained earnings and prepares the accounts for the next accounting period.

Which of the Following Types of Entries Is Used to Reset