Closing Entries Are Made

question 120

Multiple Choice

Closing entries are made

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