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andrew-mc [135]
2 years ago
14

Closing entries are necessary for a. permanent accounts only.

Business
1 answer:
soldi70 [24.7K]2 years ago
7 0

Closing entries are necessary for temporary accounts only.

A closing entry involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet. This closing entry is a journal entry which is made at the end of the accounting period.

The temporary accounts include expenses, revenue, dividends, and so these accounts are to be closed at the end of the accounting year. Thus, the purpose of closing entry is to reset the temporary account balances to zero on the general ledger.

Hence, temporary accounts are used to record accounting activity during a specific period of time.

To learn more about closing entries here:

brainly.com/question/28199222

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