Accounting entries made at the end of an accounting year to reduce expense and income accounts to zero are called:
A) adjusting entries.
B) correcting entries.
C) end of period entries.
D) closing entries.

Question

Quizplus · Accepted Answer

Closing entries are made at the end of an accounting year to reduce expense and income accounts to zero and transfer the balance to retained earnings. This process ensures that the accounts are ready for the next accounting period.

Accounting Entries Made at the End of an Accounting Year