When closing the accounting period you:

Question

Quizplus · Accepted Answer

When closing the accounting period, the temporary accounts, which include revenue, expense, and dividend accounts, are closed to the retained earnings account. This process is known as closing entries. The purpose of closing these accounts is to reset them to zero for the next accounting period and to update the retained earnings account with the net income or loss of the period. Therefore, the best choice is A)Close temporary accounts at year end. The other options are not accurate as bringing account balances up to date and closing permanent accounts are not part of the closing entries process.

When Closing the Accounting Period You