At the end of the accounting period, closing entries are used to reset the balance of the temporary accounts to zero.Into what account are the balances of the temporary accounts transferred?
A)Unearned revenue
B)Retained earnings
C)Capital stock account
D)Net income account

Question

Quizplus · Accepted Answer

The balances of temporary accounts, which include revenues, expenses, and dividends, are transferred to the Retained Earnings account at the end of the accounting period through closing entries. This process resets the balances of these temporary accounts to zero, preparing them for the next accounting period.

At the End of the Accounting Period, Closing Entries Are