All income statement accounts will be closed at the end of the period.

Name: All income statement accounts will be closed at the end of the period.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

This is known as the closing process, where all revenue and expense accounts are transferred to the retained earnings account, which is a part of the balance sheet, at the end of the period. This helps to start the new accounting period with zero balances in the income statement accounts.

All Income Statement Accounts Will Be Closed at the End