Question

The closing entry process consists of closing?all permanent accounts.only the Retained Earnings account.only the dividends account.all temporary accounts.all asset and liability accounts.

Answer 1

Answer: The closing entry process consists of closing all temporary accounts.

Explanation:  The closing entry process is the process that consists in canceling the income statements (made up of the income, expenses, sales and production costs accounts) and transferring the figures of the respective balance accounts (assets, liabilities and heritage) . This closing allows to know the economic result of the period and quantify the gains or losses.