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 current market values.
D)are adjusted to budgeted amounts.
E)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Closing entries are made to transfer the balances of temporary accounts (such as revenues, expenses, and dividends) to permanent accounts (such as retained earnings), not to adjust accounts to historical cost, include depreciation, adjust to current market values, or adjust to budgeted amounts.

The Result of Closing Entries Is That Balances in All