Closing entries
A) are prepared before the financial statements.
B) reduce the number of permanent accounts.
C) cause the revenue and expense accounts to have zero balances.
D) summarize the activity in every account.

Question

Quizplus · Accepted Answer

Closing entries are specifically designed to transfer the balances from temporary accounts, including revenue and expense accounts, to permanent accounts, thereby resetting the temporary accounts to zero for the start of the new accounting period.

Closing Entries