One of the purposes of the closing entries is to bring the balances in all asset,liability,revenue,and expense accounts down to zero to start the next accounting period.

Question

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At the end of each year,after all transactions and adjustments are recorded,all revenue,expense,and dividends accounts are closed by moving their balances to their permanent home in Retained Earnings.Asset and liability accounts are not closed.

One of the Purposes of the Closing Entries Is to Bring