Which of the following does not occur during the closing process?
A) Journal entries are made to return the balance in all temporary accounts to zero.
B) Journal entries are made to transfer the net income or loss to retained earnings.
C) Journal entries are made to return the balance in all permanent accounts to zero.
D) Journal entries are made to transfer the dividends to retained earnings.

Question

Quizplus · Accepted Answer

The balance in permanent accounts is not returned to zero during the closing process. Instead, the balances in the permanent accounts are carried forward to the next accounting period. Only temporary accounts, such as revenue, expense, and dividend accounts, are closed to zero during the closing process. So, options A, B, and D are correct statements about what occurs during the closing process.

Which of the Following Does Not Occur During the Closing