Closing entries are made by the business at the end of an accounting period to:
A) create a zero balance in the revenue and expense accounts.
B) create a zero balance in the owner's capital account.
C) transfer balances from previous periods to the correct accounts
D) close off any accounts no longer used.

Question

Quizplus · Accepted Answer

closing entries transfer ending balances from temporary revenue and expense accounts to the permanent account owner's capital

Closing Entries Are Made by the Business at the End