The entries that transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________ entries.
A) closing
B) opening
C) adjusting
D) end of period

Question

Quizplus · Accepted Answer

Closing entries transfer the revenue, expense, and dividends balances to the Retained Earnings account to prepare the company's books for the next period. Opening entries are made at the start of a new accounting period, adjusting entries are made to update accounts for accruals and deferrals, and end of period entries is not a commonly used term in accounting.

The Entries That Transfer the Revenue, Expense, and Dividends Balances