Closing entries may be prepared from all of the following except

Name: Closing entries may be prepared from all of the following except
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Closing entries are prepared to transfer the balances of temporary accounts (revenue, expense, and dividend accounts) to the retained earnings account. The balance sheet only shows the balances of permanent accounts (asset, liability, and equity accounts). Therefore, closing entries cannot be prepared from the balance sheet alone.

Closing Entries May Be Prepared from All of the Following