Question

fill in the blank question
closing means to transfer account balances from ______ (asset/liability/permanent/temporary) accounts so that they will start with a ______ (contra/larger/zero) balance at the beginning of the next period.
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Explanation:

Closing entries are accounting procedures that reset temporary accounts (like revenues, expenses, dividends) at the end of an accounting period. These accounts track activity for a single period, so their balances are transferred to permanent accounts, leaving them with a zero balance to start the next period. Permanent accounts (assets, liabilities, equity) retain their balances across periods and are not closed.

Answer:

1. temporary
2. zero