Closing entries will affect:
A) total assets.
B) Cash.
C) Owner's Capital.
D) total liabilities.

Question

Quizplus · Accepted Answer

Closing entries are made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts. Owner's Capital is a permanent account that is affected by the closing process, as revenues, expenses, and dividends (or withdrawals) are closed to the Owner's Equity (Capital) account to reflect the period's net income or loss and distributions to owners. Total assets, cash, and total liabilities are not directly affected by closing entries, as these involve the transfer of balances within equity accounts rather than changes to asset or liability accounts.

Closing Entries Will Affect