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What is the purpose of the closing process? Multiple Choice To record transactions for the period...

What is the purpose of the closing process? Multiple Choice

To record transactions for the period

To set all account balances to zero

To prepare the accounting records so they are ready to track results for the following year

To adjust for accrual and deferral transactions

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Answer #1

The purpose of closing process of accounts is to reset the temporary account balance to Zero on the general ledger, the record keeping system for a company's financial data. Temporary accounts are used to record accounting activity during a specific period.

Temporary accounts are closed at the year end so that correct financial position can be obtained.

Option B is correct.

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