The closing process is a two-step process. First revenue, expense, and withdrawals are set to zero balance. Second, the process summarizes a period's assets and expenses.

Question

Quizplus · Accepted Answer

The closing process is a four-step process. The first step is to close revenue accounts to a zero balance. The second step is to close expense accounts to a zero balance. The third step is to close withdrawal accounts to a zero balance. Finally, the fourth step is to summarize the period's assets and liabilities.

The Closing Process Is a Two-Step Process