Closing entries are dated in the journal as of
A) the date they are actually journalized, although they are generally prepared after the end of the accounting period
B) the last day of the accounting period, although they are actually journalized after the end of the accounting period
C) the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period
D) the first day of the subsequent accounting period

Question

Quizplus · Accepted Answer

Closing entries are made at the end of the accounting period to transfer the balances of the temporary accounts (revenue, expense, and dividend) to the retained earnings account. These entries are dated as of the last day of the accounting period, even if they are made after the end of the period. This ensures that the financial statements accurately reflect the revenue and expenses for the period and the net income or loss.

Closing Entries Are Dated in the Journal as of