Closing entries are prepared to close the
A) temporary accounts.
B) accumulated depreciation accounts.
C) owner's Capital account.
D) Wages Payable account.
E) payables and receivables.

Question

Quizplus · Accepted Answer

Closing entries are used to close the temporary accounts, which include revenue, expense, and dividend accounts, so that these balances can be transferred to the owner's equity section of the balance sheet. The other options do not involve temporary accounts that need to be closed at the end of an accounting period.

Closing Entries Are Prepared to Close the