Which of the Following Correctly Describes the Closing Entry Process

Multiple Choice

Which of the following correctly describes the closing entry process?

A) The closing process reduces the balances in the permanent accounts to zero at the end of each period.
B) The closing entries are usually prepared prior to the adjusted trial balance.
C) The closing process creates a zero balance in all temporary accounts at the end of each period.
D) The closing process creates a zero balance at the end of each period for all accounts on the year-end trial balance.