Journal entries recorded at the end of each accounting period to prepare the revenue,expense,and dividends accounts for the upcoming period and to update the retained earnings account for the events of the period just finished are referred to as:
A)Adjusting entries.
B)Closing entries.
C)Final entries.
D)Work sheet entries.
E)Updating entries.

Question

Quizplus · Accepted Answer

Closing entries are recorded at the end of each accounting period to close out the revenue, expense and dividends accounts and update the retained earnings account. The purpose of these entries is to prepare the accounts for the upcoming period and reflect the events of the period just finished.

Journal Entries Recorded at the End of Each Accounting Period