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QUESTION IMAGE

closing entries are recorded ____________ after the preparation of the …

Question

closing entries are recorded ____________
after the preparation of the trial balance
after the preparation of financial statements
before the preparation of financial statements
before the preparation of the closing trial balance

Explanation:

Brief Explanations

Closing entries transfer temporary - account balances to permanent accounts. They are made after financial statements are prepared to start the next accounting period with zero - balances in temporary accounts.

Answer:

after the preparation of financial statements