WHAT IS THE PURPOSE OF CLOSING ENTRIES? A) TO BRING THE BALANCES OF ASSETS TO ZERO B) TO UPDATE BALANCES OF LIABILITY ACCOUNTS THE c) TO TRANSFER THE BALANCES OF TEMPORARY ACCOUNTS TO RETAINED EARNINGS D) TO REPORT CHANGES IN THE BALANCE SHEET
WHAT IS THE PURPOSE OF CLOSING ENTRIES? A) TO BRING THE BALANCES OF ASSETS TO ZERO B) TO UPDATE BALANCES OF LIABILITY ACCOUNTS THE c) TO TRANSFER THE BALANCES OF TEMPORARY ACCOUNTS TO RETAINED EARNINGS D) TO REPORT CHANGES IN THE BALANCE SHEET
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...
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What is the purpose of closing entries ?

Transcribed Image Text:WHAT IS THE PURPOSE OF CLOSING ENTRIES?
A) TO BRING THE BALANCES OF ASSETS TO ZERO
B) TO UPDATE
BALANCES OF LIABILITY
ACCOUNTS
THE
c) TO TRANSFER THE BALANCES OF TEMPORARY
ACCOUNTS TO RETAINED EARNINGS
D) TO REPORT CHANGES IN THE BALANCE SHEET
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