Closing entries result in net income being transferred to

Name: Closing entries result in net income being transferred to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Closing entries are made at the end of an accounting period to transfer the balances of temporary accounts (such as revenue and expense accounts) to the permanent account (such as retained earnings). This means that net income, which is the difference between revenue and expenses, is ultimately transferred to the retained earnings account.

Closing Entries Result in Net Income Being Transferred to