The closing entry process consists of closing
A) all asset and liability accounts.
B) out the Owner's Capital account.
C) all permanent accounts.
D) all temporary accounts.

Question

Quizplus · Accepted Answer

The closing entry process involves closing all temporary accounts (such as revenues, expenses, and dividends) by transferring their balances to the Owner's Capital account. Permanent accounts (such as asset and liability accounts) are not closed, as they carry forward into the next accounting period. Therefore, choice D is the best option.

The Closing Entry Process Consists of Closing