Multiple Choice
What is the purpose of closing the books?
A) To reset the revenue and expense accounts to zero so that they are ready to record the next period's transactions
B) To reset the asset and liability accounts to zero so that they are ready to record the next period's transactions
C) To transfer all account activity to retained earnings so that they are ready to record the next period's transactions
D) To transfer all account activity to paid-in-capital so that they are ready to record the next period's transactions
E) To transfer and reset any account with activity during the prior period to zero
Correct Answer:
Verified
Correct Answer:
Verified
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