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Closing Entries a. Which accounts are considered temporary accounts b. Why are temporary
Chapter 10, Problem 1(choose chapter or problem)
QUESTION:
Closing Entries
a. Which accounts are considered temporary accounts?
b. Why are temporary accounts closed at the end of the fiscal year?
Questions & Answers
QUESTION:
Closing Entries
a. Which accounts are considered temporary accounts?
b. Why are temporary accounts closed at the end of the fiscal year?
ANSWER:Step 1 of 3
A general ledger that is created with zero balance and is considered as temporary account. It is created to make closing entries at the end of account year and at the end of the year its account balance is removed by transferring to another account.