The goal of closing entries does NOT include:
A)to clear revenue and expense accounts.
B)to update the Capital account balance.
C)to clear the Withdrawals account.
D)to adjust assets and liability accounts to their beginning balances.

Question

Quizplus · Accepted Answer

The goal of closing entries is to clear revenue and expense accounts, update the owner's equity accounts (including the Capital and Withdrawals accounts) and transfer the net income or loss to the owner's equity account. Adjusting assets and liability accounts to their beginning balances is done during the preparation of adjusting entries.

The Goal of Closing Entries Does NOT Include