Which of the following statements about the closing process is correct?
A)Closing entries are recorded at the end of each reporting period,which could be monthly,quarterly,or annually.
B)After closing entries are posted,the balances of the income statement accounts will be zero.
C)Closing entries are made to zero out the balances of the permanent accounts on the balance sheet.
D)After closing entries are posted,the only temporary account with a balance is the Dividends account.

Question

Quizplus · Accepted Answer

At the end of each year,after all the year's transactions and adjustments are recorded,all revenue,expense,and dividends accounts are closed by moving their balances to their permanent home in Retained Earnings.The revenue and expense accounts are income statement accounts;their balances will be zero after the closing entries are posted.

Which of the Following Statements About the Closing Process Is