Periodically,companies summarize the balances in the books of account.This process is called: ____.
A) Cost accounting
B) Account closure
C) Periodic closure
D) Closing the books
E) Statement wrap-up

Question

Quizplus · Accepted Answer

Closing the books is the process of summarizing the balances in the books of account periodically, usually at the end of a fiscal year or accounting period. This process involves recording all transactions and adjusting entries, calculating final account balances, and preparing financial statements, such as the income statement and balance sheet. The purpose of closing the books is to ensure that the company's financial records are accurate and up-to-date and to facilitate the preparation of tax returns and other financial reports.

Periodically,companies Summarize the Balances in the Books of Account