Closing the temporary accounts at the end of each accounting period
A)Gives the withdrawals account a zero balance.
B)Serves to transfer the effects of these accounts to the proper equity account on the balance sheet.
C)Prepares the withdrawals account for use in the next period.
D)Gives the revenue and expense accounts zero balances.
E)All of these answers are correct.

Question

Quizplus · Accepted Answer

Closing temporary accounts involves resetting the balances of revenue, expense, and withdrawal accounts to zero, transferring their balances to the equity account, and preparing them for the next period.

Closing the Temporary Accounts at the End of Each Accounting