asked 222k views
2 votes
The process in which temporary accounts are reduced to zero balances and transferred to retained earnings is the ______ process.

a)zero
b)closing
c)opening
d)adjusting

asked
User EricS
by
8.0k points

1 Answer

4 votes

Final answer:

The closing process is when temporary accounts are reduced to zero balances and transferred to retained earnings.

Step-by-step explanation:

The process in which temporary accounts are reduced to zero balances and transferred to retained earnings is the closing process. This process occurs at the end of an accounting period, usually at the end of a month or year. It involves transferring the balances of revenue, expense, and dividend accounts to the retained earnings account.

answered
User ColbyJax
by
7.0k points
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