The primary purpose of the balance sheet is to reflect

Asked by admin @ in Business viewed by 303 People

The primary purpose of closing entries is to:Prove the equality of the debit and credit entries in the general journal.Ensure that all assets and liabilities are recognized in the appropriate period.Update the balance of Retained Earnings and prepare revenue, expense, and dividend accounts for next period's transactions.Assure that adjusting entries balance.

Answered by admin @


Answer:

The answer is : to Update the balance of Retained Earnings and prepare revenue, expense, and dividend accounts for next period's transactions

Explanation:

The closing entries is to set the accounts' balance of temporary account to zero by transferring these balance to other permanent accounts at the end of the accounting cycles.

Temporary accounts includes accounts of revenues and expenses and dividend payment. Permanent account is Retained Earnings.

As Revenues and expenses are recorded for an accounting period, their balances should be all transferred to Retained Earnings account, together with the dividend payment during the period, to determined the ending balance of Retained Earning account at the end of the accounting period.

Once the closing entries has been recorded, the balance of all revenues and expenses, dividend payments accounts will be set back to zero at the start of next account period for recording revenue and expenses taken place in that period only. While Retained Earning Balance will show how much accumulated Earnings a firm retained since the start of its business.


Similar Questions

How to do a vertical analysis of a balance sheet

Asked by admin @ in Business viewed by 301 persons

When performing vertical analysis of a balance sheet, the base amount is ________. a.total cash and cash equivalents b.gross profit c.total assets d.net income?

What is the difference between balance sheet and trial balance

Asked by admin @ in Business viewed by 334 persons

Select all that apply What is the difference between an adjusted trial balance and an unadjusted trial balance? (Check all that apply.) Multiple select question. The adjusted trial balance is …

Stock investments to be sold in 7 months balance sheet

Asked by admin @ in Business viewed by 346 persons

Classify each of the following financial statement items taken from Ming Corporation’s balance sheet. Classify each of the following financial statement Stockholders’ EquityLong-term InvestmentsCurrent AssetsIntangible AssetsLong-term LiabilitiesCurrent LiabilitiesProperty, Plant, and …

Assets are listed on the balance sheet in order of

Asked by admin @ in Business viewed by 292 persons

A balance sheet lists assets in order of their ______________. dollar value, from smallest to largest date of acquisition, with the most recently acquired assets listed first liquidity, with the …

Accounts receivable is classified on the balance sheet as a

Asked by admin @ in Business viewed by 304 persons

Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on …

Which are shown on a balance sheet select three choices

Asked by admin @ in Mathematics viewed by 320 persons

Which are shown on a balance sheet? Check all that apply. assets liabilities age time period date of birth

Deferred credits will appear on the balance sheet with the

Asked by admin @ in Accountancy viewed by 477 persons

Deferred credits will appear on the balance sheet with the

The 2017 balance sheet of dream inc

Asked by maham237 @ in Business viewed by 426 persons

The 2017 balance sheet of Dream, Inc., showed current assets of $4,810 and current liabilities of $2,230. The 2018 balance sheet showed current assets of $5,360 and current liabilities of …

Comparative balance sheet questions

Asked by maham237 @ in Business viewed by 290 persons

Tamarisk, Inc. reported net income of $194,700 for 2020. Tamarisk also reported depreciation expense of $47,700 and a loss of $4,900 on the disposal of plant assets. The comparative balance …

Bonds payable are usually classified on the balance sheet as

Asked by admin @ in Business viewed by 271 persons

Which of the following is a typical current liability? a. Bonds payable b. Sales taxes payable c. All of these are typically current liabilities d. Maturities of notes payable due …

How do you calculate net income on a balance sheet

Asked by admin @ in Business viewed by 297 persons

How to calculate net income from balance sheet?

The current assets section of the balance sheet should include

Asked by admin @ in Business viewed by 281 persons

Prepare the current assets section of the balance sheet for Buffalo Industries, assuming that in addition to the receivables it has cash of $97,340, merchandise inventory of $167,950, and supplies …

Following is the balance sheet of solar power ltd

Asked by admin @ in Accountancy viewed by 492 persons

Cash Flow Statement with Adjustments 43. Following are the Balance Sheets of Solar Power Ltd, as at 31st March, 2014 and 2013:Solar Power Ltd.BALANCE SHEETParticularsNote No. …

Home depot income statement and balance sheet

Asked by maham237 @ in Business viewed by 347 persons

Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,583 $38,473 Nonoperating …

The post closing trial balance contains balance sheet accounts only

Asked by admin @ in Business viewed by 318 persons

A post closing trial balance is a list of permanent accounts and their balances afterclosing entries have been journalized and recorded in the accounting system. These accounts will be carried …

Most viewed questions in Business

Foolproof module 9 test answers

Asked by maham237 @ in Business viewed by 3323 persons

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ in Business viewed by 2743 persons

Interest rates are expressed as a percentage of

Asked by maham237 @ in Business viewed by 2114 persons

How to enhance knowledge regarding environmental factors through capsim?

Asked by wiki @ in Business viewed by 1823 persons

Match the job titles with the career clusters.

Asked by maham237 @ in Business viewed by 1484 persons

A company that allows you to license software

Asked by maham237 @ in Business viewed by 1297 persons

Lupe is ready to open a checking account

Asked by maham237 @ in Business viewed by 1290 persons

Mays and mccovey are beer brewing companies

Asked by maham237 @ in Business viewed by 1219 persons

What must be marked on ready to eat bags phfs

Asked by maham237 @ in Business viewed by 1175 persons

Coq six sigma

Asked by maham237 @ in Business viewed by 1141 persons

Henry ford was the first entrepreneur to implement which strategy

Asked by maham237 @ in Business viewed by 1086 persons

Your company was recently served with a lawsuit

Asked by maham237 @ in Business viewed by 1078 persons

Case study starting a business project schedules and curves edgenuity

Asked by maham237 @ in Business viewed by 1068 persons

Which two of the four cs of credit have to do with earning potential and available cash?

Asked by wiki @ in Business viewed by 985 persons

The total annual expenditures on advertising in the united states

Asked by maham237 @ in Business viewed by 973 persons