The goal of closing is to clear all temporary accounts and update Capital.

Name: The goal of closing is to clear all temporary accounts and update Capital.
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Question

Quizplus · Accepted Answer

Closing entries are made at the end of the accounting period to transfer temporary accounts such as revenue, expenses, and dividends to the permanent Capital account. The end result is to update the balance of the Capital account with the net income/loss from the period.

The Goal of Closing Is to Clear All Temporary Accounts