Select the Statement That Best Describes the Primary Purpose of Preparing

Multiple Choice

Select the statement that best describes the primary purpose of preparing closing entries.

A) To facilitate adjusting entries.
B) To reduce the balances in the temporary accounts to zero in order to accumulate the revenues and expenses of the next period.
C) To complete the recording of various transactions which are begun in one period and concluded in a later period.
D) To determine the amount of profit or loss for the period.