Closing entries are made:

Question

Quizplus · Accepted Answer

Closing entries are made in both the journal and the ledger. They are recorded in the journal to provide a permanent record of the transactions, and then posted to the ledger accounts to update the balances and prepare them for the next accounting period. The other two options, A and D, are not correct as closing entries are not solely recorded in the ledger or on the worksheet. Option C is also incorrect as it suggests that closing entries are only recorded in the journal, which is not the case.

Closing Entries Are Made