Closing entries are an optional part of the accounting cycle.

Name: Closing entries are an optional part of the accounting cycle.
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Closing entries are a mandatory part of the accounting cycle, used to reset the balances of temporary accounts (revenues, expenses, and dividends) to zero and transfer their balances to permanent accounts (like retained earnings) to prepare the accounts for the next accounting period.

Closing Entries Are an Optional Part of the Accounting Cycle