Which of the Following Statements Best Describes the Purpose of Closing

Multiple Choice

Which of the following statements best describes the purpose of closing entries?

A) To faciliate posting and taking a trial balance.
B) To determine the amount of net income or net loss for the period.
C) To reduce the balances of temporary accounts to zero so that they may be used to accumulate the revenues, expenses and dividends of the next period.
D) To complete the record of various transactions that were started in a prior period.