The Closing Entry Process Consists of Closing

question 154

Multiple Choice

The closing entry process consists of closing

• A)all asset and liability accounts.
• B)out the retained earnings account.
• C)all permanent accounts.
• D)all temporary accounts.

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Definitions:

Worksheet

A paper or digital document used to organize data and perform calculations, often preliminary to the preparation of financial statements.

Ledger

A group of accounts that records data from business transactions.

Withdrawals Account

An account used to track the money that an owner takes out of the business for personal use, also known as draws.

Capital Account

A financial statement that shows the changes in a company's equity, including contributions by and distributions to owners over a period.