Which of the following would be used to reset the income statement accounts to zero at the end of the period?
A)A journal entry
B)An adjusting entry
C)A closing entry
D)A temporary account

Question

Quizplus · Accepted Answer

Closing entries are used to reset the income statement accounts to zero at the end of the period. These entries transfer the balances of temporary accounts (revenue, expense, and dividend accounts) to the retained earnings account, which is a permanent account. This process prepares the accounts for the next period's transactions.

Which of the Following Would Be Used to Reset the Income