One Purpose of Closing Entries Is to

question 54

Multiple Choice

One purpose of closing entries is to

• A) transfer the results of operations to owner's equity.
• B) reduce the owner's capital account balance to zero so that the account is ready for the next period.
• C) adjust the ledger account balances to provide complete and accurate figures for use on financial statements.
• D) close all accounts so that the ledger is ready for the next accounting period.

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