The entries that transfer the revenue,expense,and dividends balances to the Retained Earnings account to prepare the company's books for the next period are called ________.
A)closing entries
B)opening entries
C)adjusting entries
D)temporary accounts

Question

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Closing entries are made at the end of an accounting period to transfer the balances of revenue, expense, and dividends accounts to Retained Earnings, which is a permanent account. This process prepares the company's books for the next accounting period. Opening entries are made at the start of a new accounting period to transfer the balances of various accounts from the previous year's closing entries. Adjusting entries are made during the accounting period to update the accounts for accruals, deferrals, and estimates. Temporary accounts include revenue, expense, and dividends accounts that are closed at the end of an accounting period.

The Entries That Transfer the Revenue,expense,and Dividends Balances to the Retained