The result of closing entries is that balances in all temporary accounts
A)are adjusted to historical cost.
B)include monthly depreciation.
C)are adjusted to zero.
D)are adjusted to budgeted amounts.
E)are adjusted to current values.

Question

Quizplus · Accepted Answer

Closing entries transfer the balances of temporary accounts (revenue, expense, and dividend accounts) to the retained earnings account, resulting in a zero balance in these temporary accounts. This process prepares the accounts for the next accounting period. Choices A, B, D, and E are not correct as they do not accurately describe the result of closing entries.

The Result of Closing Entries Is That Balances in All