Closing entries are journalized and posted
A) before the financial statements are prepared.
B) after the financial statements are prepared.
C) at management's discretion.
D) at the end of each interim accounting period.

Question

Quizplus · Accepted Answer

Closing entries are journalized and posted after the financial statements are prepared in order to reset the temporary accounts to zero and transfer their balances to the permanent accounts. This process ensures that the company's financial statements accurately reflect its financial position at the end of the accounting period.

Closing Entries Are Journalized and Posted