Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period.

Name: Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period.
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Quizplus · Accepted Answer

Closing revenue and expense accounts transfers the balance to the retained earnings account, which resets the revenue and expense accounts for use in the next accounting period.

Closing Revenue and Expense Accounts at the End of the Accounting