Closing the Temporary Accounts at the End of Each Accounting

question 85

Multiple Choice

Closing the temporary accounts at the end of each accounting period does all of the following except:

• A) Serves to transfer the effects of these accounts to the owner's capital account on the balance sheet.
• B) Prepares the withdrawals account for use in the next period.
• C) Gives the revenue and expense accounts zero balances.
• D) Has no effect on the owner's capital account.
• E) Causes owner's capital to reflect increases from revenues and decreases from expenses and withdrawals.

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