Closing entries
A) are prepared before the financial statements.
B) reduce the number of permanent accounts.
C) cause the revenue and expense accounts to have zero balances.
D) close all of the permanent accounts.

Question

Quizplus · Accepted Answer

Closing entries are made to transfer the balances of temporary accounts (revenues, expenses, and dividends) to permanent accounts (retained earnings), resulting in zero balances in temporary accounts to start the new accounting period.

Closing Entries