Which one of the following is usually prepared only at the end of a company's annual accounting period?
A) Preparing financial statements
B) Journalizing and posting adjusting entries
C) Journalizing and posting closing entries
D) Preparing an adjusted trial balance

Question

Quizplus · Accepted Answer

Journalizing and posting closing entries are typically done only at the end of a company's annual accounting period to prepare the accounts for the next period by clearing out the balances of temporary accounts (revenues, expenses, and dividends) and transferring their balances to permanent accounts (Retained Earnings or similar).

Which One of the Following Is Usually Prepared Only at the End