Temporary accounts are closed to a zero balance at the end of the accounting period to allow for the accumulation of profit items in the following period.

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Temporary accounts such as revenue, expense, and dividend accounts are closed to a zero balance at the end of the accounting period to prepare for the next period's transactions. This allows for the calculation of net income for the period and the accumulation of profit items in the retained earnings account.

Temporary Accounts Are Closed to a Zero Balance at the End