Closing entries:
A) need not be journalized since they appear on the worksheet.
B) are prepared before adjusting entries.
C) are not needed if adjusting entries are prepared.
D) must be journalized and posted.

Question

Quizplus · Accepted Answer

Closing entries are an essential part of the accounting cycle. They transfer the balances of temporary accounts (revenues, expenses, and dividends) to permanent accounts (retained earnings). This process requires journalizing the closing entries and posting them to the ledger to prepare the accounts for the next accounting period.

Closing Entries