What is the goal of the closing process? a. to end the accounting period with a profit b. to verify that all adjustments have been made c. to make sure all temporary accounts have a zero balance d. to move all equity accounts to Retained Earnings

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Mathematics

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25 May, 10:44

What is the goal of the closing process? a. to end the accounting period with a profit b. to verify that all adjustments have been made c. to make sure all temporary accounts have a zero balance d. to move all equity accounts to Retained Earnings

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Beard · Answer 1

C. To make sure all temporary accounts have a zero balance.

Step-by-step explanation:

The closing process is an accounting method applied at the end of the year with the purpose of ensuring that all accounts are ready for the preparation of financial statements, as well as the start of a new accounting year.

Temporary accounts are made permanent. Also, the accounts for the present year are zeroed. By so doing, only the current balance will be reflected in the new year accounts.