The entries that transfer the revenue,expense,and Owner,Withdrawals balances to the Owner,Capital account to prepare the company's books for the next period are called ________ entries.
A) closing
B) opening
C) adjusting
D) end of period

Question

Quizplus · Accepted Answer

Closing entries are made at the end of the accounting period to transfer the balances of revenue, expense, and Owner, Withdrawals accounts to the Owner, Capital account. This is done to prepare the company's books for the next period by resetting the balances of temporary accounts to zero. Therefore, choice A, closing entries, is the best answer.

The Entries That Transfer the Revenue,expense,and Owner,Withdrawals Balances to the Owner,Capital