entries are recorded at the end of a financial year to reduce expense and income accounts to zero balances.
A) end of period.
B) adjusting.
C) closing.
D) correcting.

Question

Quizplus · Accepted Answer

Closing entries are recorded at the end of a financial year to reduce expense and income accounts to zero balances. This helps in preparing financial statements accurately and also prepares the accounts for the coming year.

Entries Are Recorded at the End of a Financial Year