Choose the statement below that explains what "closing" means. Multiple choice question. Closing means to bring an account balance to zero. Closing means to transfer an expense account's balance to the income statement. Closing means to transfer the balance in an account to an asset account. Closing means to adjust an account's balance to its correct amount.

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19-09-2022
Business

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Choose the statement below that explains what "closing" means. Multiple choice question. Closing means to bring an account balance to zero. Closing means to transfer an expense account's balance to the income statement. Closing means to transfer the balance in an account to an asset account. Closing means to adjust an account's balance to its correct amount.

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Tundexi Tundexi · Answer 1 · 2022-09-22T11:49:59-04:00

The statement that explains what "closing" means is to bring an account balance to zero.

What is an account closing?

It involves resetting the balances of the temporary & permanent accounts in which the balance of temporary accounts is zero and the balance of the permanent accounts increase. In account, the income summary is important in a closing entry as this is the summary used in the aggregation of all income account.

The closing entry sequences are transfer of all revenue accounts into the income summary, closing of all expenses by crediting the expense accounts and debiting income summary closing of the income account and transfer of all income statement balances to retained earnings.

In conclusion, the statement that explains what "closing" means is to bring an account balance to zero. Therefore, the Option A is correct.