Closing entries are prepared:
A) to clear all temporary accounts to zero.
B) to update the Capital balance.
C) at the end of the accounting period.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Closing entries are prepared for all the reasons listed: to clear all temporary accounts to zero, to update the Capital balance, and at the end of the accounting period. This process ensures that the books are ready for the next accounting period.

Closing Entries Are Prepared