The entries that transfer the balances of the temporary owner's equity accounts to the permanent owner's equity account are called

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Closing entries transfer the balances of temporary owner's equity accounts (such as revenue and expense accounts) to the permanent owner's equity account at the end of an accounting period. This process resets the temporary accounts to zero to start a new period. Adjusting entries are made during the accounting period to update accounts for items such as accrued expenses or depreciation. Reversing entries are made at the beginning of a new accounting period to cancel out adjusting entries made in the previous period. General journal entries can refer to any entry made in the general journal, which records transactions that are not recorded in a special journal.

The Entries That Transfer the Balances of the Temporary Owner's