Closing entries are prepared
A) before adjusting entries.
B) during the month.
C) on the first day of the new accounting period.
D) after adjusting entries.
E) at the option of the company's accounting department.

Question

Quizplus · Accepted Answer

Closing entries are prepared after adjusting entries at the end of the accounting period to transfer the balances of revenue, expense, and dividend accounts to the Retained Earnings account. This process helps to reset the balances of these temporary accounts to zero and prepare them for the next accounting period.

Closing Entries Are Prepared