Closing the accounts refers to:

Question

Quizplus · Accepted Answer

Closing the accounts involves transferring the balances from revenue and expense accounts to the profit and loss summary account, which is then closed to the equity account. This process helps to reset the accounts for the next accounting period. Therefore, option D is the best choice. Options A and C are incorrect because simply establishing zero balances in the balance sheet or ledger accounts does not involve the closing process. Option B is also incorrect as closing the accounts does not necessarily involve the cash at bank account specifically.

Closing the Accounts Refers To