Entries required to zero the balances of the temporary accounts at the end of the year are called
A) posting entries.
B) adjusting entries.
C) closing entries.
D) correcting entries.

Question

Quizplus · Accepted Answer

Closing entries are required at the end of the accounting period to transfer the balances of temporary accounts (revenue, expense, and dividend accounts) to the retained earnings account. This process prepares the temporary accounts for the next accounting period.

Entries Required to Zero the Balances of the Temporary Accounts