The purpose of making closing entries is to:
A) Prepare revenue and expense accounts for the recording of the next period's revenue and expenses.
B) Enable the accountant to prepare financial statements at the end of the accounting period.
C) Establish new balances in the balance sheet accounts.
D) Reduce the number of expense accounts.

Question

Quizplus · Accepted Answer

Closing entries are made to reset revenue and expense accounts to zero, preparing them for the next period's transactions.

The Purpose of Making Closing Entries Is To