When closing entries are made
A)All balance sheet accounts are closed.
B)All permanent accounts are closed but not the temporary accounts.
C)All real accounts are closed but not the temporary accounts.
D)All ledger accounts are closed to start the new fiscal period.
E)All temporary accounts are closed but not the permanent accounts.

Question

Quizplus · Accepted Answer

Closing entries are made to close all temporary accounts (revenues, expenses, and dividends) to prepare them for the next accounting period, while permanent accounts (assets, liabilities, and equity) remain open.

When Closing Entries Are Made