Closing Entries are necessary before completing the Financial Statements.

Name: Closing Entries are necessary before completing the Financial Statements.
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Question

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Closing entries are made after completing the financial statements to prepare the accounts for the next accounting period by clearing out the balances of temporary accounts (revenues, expenses, and dividends) and transferring their balances to permanent accounts (Retained Earnings or similar).

Closing Entries Are Necessary Before Completing the Financial Statements