The closing entry process consists of closing
A) all asset and liability accounts.
B) out the retained earnings account.
C) all permanent accounts.
D) all temporary accounts.

Question

Quizplus · Accepted Answer

The closing entry process involves closing out all temporary accounts related to revenues, expenses, gains, and losses. This ensures that these accounts start with a balance of zero at the beginning of the next accounting period. Permanent accounts like asset and liability accounts and the retained earnings account are not closed out during this process.

The Closing Entry Process Consists of Closing