The closing process brings all temporary accounts to a zero balance and updates the balance in the retained earnings account.

Question

Quizplus · Accepted Answer

This is correct. The closing process involves transferring the balances of temporary accounts (such as revenue and expenses) to the retained earnings account, resulting in a zero balance for these temporary accounts. The retained earnings account is then updated to reflect the net income or loss for the period.

The Closing Process Brings All Temporary Accounts to a Zero