Entries required to zero the balances of the temporary accounts at the end of the year are called:
A)adjusting entries.
B)correcting entries.
C)closing entries.
D)posting entries.

Question

Quizplus · Accepted Answer

Closing entries are made at the end of the accounting period to transfer the balances of the temporary accounts (revenues, expenses, and dividends) to the retained earnings account. This process zeroes out the temporary accounts and prepares them for the next accounting period. Adjusting entries are made during the accounting period to ensure that financial statements reflect accurate and up-to-date information. Correcting entries are made to fix errors found in previous transactions. Posting entries are made to record transactions in the general ledger.

Entries Required to Zero the Balances of the Temporary Accounts