Closing entries are journalized and posted
A) before the financial statements are prepared.
B) after the financial statements are prepared.
C) when the business is closing its doors.
D) at the end of each interim accounting period.

Question

Quizplus · Accepted Answer

Closing entries are made after the financial statements are prepared to reset the balances of temporary accounts (revenues, expenses, and dividends) to zero and transfer their balances to permanent accounts (like retained earnings) for the next accounting period.

Closing Entries Are Journalized and Posted