Answer :
Closing entries are entries made at the end of an accounting period to zero out all temporary accounts. The balances are transferred to permanent accounts.
After the closing entries have been posted:
A. the temporary accounts are zeroed out
Revenues and expenses are transferred to the income Summary Account and then Income Summary is closed to Retained earnings.
After the closing entries have been posted:
A. the temporary accounts are zeroed out
Revenues and expenses are transferred to the income Summary Account and then Income Summary is closed to Retained earnings.