Closing entries
A) are prepared before the financial statements.
B) reduce the number of permanent accounts.
C) cause the revenue and expense accounts to have zero balances.
D) summarize the activity in every account.

Question

Quizplus · Accepted Answer

Closing entries are made at the end of an accounting period to transfer the balances in temporary accounts (like revenue and expense accounts) to permanent accounts (like retained earnings), resulting in a zero balance in the temporary accounts to start the new accounting period.

Closing Entries