Closing entries:
A)are prepared before financial statements are prepared.
B)reduce the number of permanent accounts.
C)cause the revenue and expense accounts to have zero balances.
D)summarize the activity in every account.

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.The temporary accounts,which include the revenue,expense,and Dividends accounts,have zero balances after the closing entries are posted.

Closing Entries