Closing Entries Are Made

question 40

Multiple Choice

Closing entries are made

• A) in order to terminate the business as an operating entity.
• B) so that all assets, liabilities, and stockholders' equity accounts will have zero balances when the next accounting period starts.
• C) in order to transfer net income (or loss) and dividends to the retained earnings account.
• D) so that financial statements can be prepared.

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