Entries required to clear or zero the balances of temporary accounts at the end of the year are called ____________ entries.
A) adjusting
B) journal
C) closing
D) clearing

Question

Quizplus · Accepted Answer

The entries required to clear or zero the balances of temporary accounts at the end of the year are called closing entries. These entries are used to transfer the balances of revenue and expense accounts to the retained earnings account, and to close out those accounts for the current period. Therefore, the best choice is C) closing.

Entries Required to Clear or Zero the Balances of Temporary