1.
Concept Introduction: Closing entries zeros all revenue and expense accounts in order to measure the net income for the period. It also updates the
The T-accounts and insert their adjusted balances as of December 31.
2.
Concept Introduction: Closing entries zeros all revenue and expense accounts in order to measure the net income for the period. It also updates the retained earnings account. The closing process is also necessary to follow the time period concept.
The
3.
Concept Introduction: Closing entries zeros all revenue and expense accounts in order to measure the net income for the period. It also updates the retained earnings account. The closing process is also necessary to follow the time period concept.
The ending balance of retained earnings.
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