Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 27)
What is the purpose of preparing closing entries?
To prepare the trial balance.
To bring all temporary accounts to zero balances.
To correct any errors.
To ensure debits and credits are equal.
Explanation
Closing entries reset the balances of temporary accounts to zero at the end of an accounting period to prepare for the next period.
Comments (0)
