Question

which of the following describes the closing process?
multiple choice
record activities that have occurred but that have not been recorded by the end of the accounting period.
record external events for the period so that financial statements can be prepared.
store all source documents used to record transactions throughout the period.
transfer the balances of temporary accounts (revenues, expenses, and dividends) to retained earnings.

Explanation:

The closing process in accounting involves resetting temporary accounts (revenues, expenses, dividends) by transferring their balances to retained earnings at the end of an accounting period. The other options describe adjusting entries, recording transactions for financial - statement preparation, and storing source documents, which are not the closing process.

Answer:

Transfer the balances of temporary accounts (revenues, expenses, and dividends) to retained earnings.