Ask Question
8 February, 07:24

Complete the following statement. The purpose of the closing process is to reset temporary (temporary/permanent) account balances to zero and to transfer the changes in all of these accounts to the Owner, captial (Capital/Summary/Withdrawal) account.

+3
Answers (1)
  1. 8 February, 08:37
    0
    Temporary, Capital

    Explanation:

    The reason is that temporary accounts include income, expenses and dividends accounts. These accounts are set to zero after an accounting period and all the differences goes to retained earnings which is capital in nature. The accounts which are assets, capital and liability in nature are called permanent accounts because these accounts are not nullified at the end of the period.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Complete the following statement. The purpose of the closing process is to reset temporary (temporary/permanent) account balances to zero ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers