Temporary accounts are closed at what stage of the accounting process?
A)At the time that adjustments are made.
B)After adjustments are made and before the income statement is prepared.
C)After the income statement and the statement of retained earnings are prepared,but before the balance sheet is prepared.
D)As the last journal entries at the end of each accounting year.

Question

Quizplus · Accepted Answer

At the end of each year,after all the year's transactions and adjustments are recorded,all revenue,expense,and dividends accounts (referred to as the temporary accounts)are closed by moving their balances to their permanent home in Retained Earnings.

Temporary Accounts Are Closed at What Stage of the Accounting