Question

One purpose of closing entries is to Multiple Choice transfer the results of operations to owner's equity. close all accounts so that the ledger is ready for the next accounting period. reduce the owner's capital account balance to zero so that the account is ready for the next period. adjust the ledger account balances to provide complete and accurate figures for use on financial statements.

Answer 1

Answer:

transfer the results of operations to owner's equity.

Explanation:

The purpose of the closing entry is to reset the temporary account balances to zero on the general ledger, the record-keeping system for a company's financial data. closing entries are done to return the revenue, expense, and drawing temporary account balances to zero in preparation for the new accounting period.