When using the work sheet to prepare closing entries, which of the following statement is correct?
A) You should use all balances listed in the balance sheet columns.
B) You should use all balances listed in the balance sheet columns and the income statement columns.
C) You should use all balances listed in the income statement columns.
D) None of the answers listed

Question

Quizplus · Accepted Answer

Closing entries are made to transfer the balances from temporary accounts (which are reported in the income statement columns, such as revenues and expenses) to permanent accounts (like retained earnings). The balances in the balance sheet columns are not affected by closing entries.

When Using the Work Sheet to Prepare Closing Entries, Which