Which of the following describes the purpose(s) of closing entries?

A. Transfer the balances of temporary accounts to common stock.
B. Transfer the balances of temporary accounts to common stock; reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.
C. Adjust the balances of asset and liability accounts for unrecorded activity during the period.
D. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.


Answer: D

Business

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