Question

multiple choice question
choose the statement below that explains what \closing\ means.
closing means to bring an account balance to zero.
closing means to transfer the balance in an account to an asset account.
closing means to adjust an accounts balance to its correct amount.
closing means to transfer an expense accounts balance to the income statement.
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Explanation:

Closing entries are accounting procedures that reset temporary account (revenue, expense, dividend) balances to zero at the end of an accounting period, preparing them for the next period. The other options are incorrect: closing does not transfer to asset accounts, adjust balances to correct amounts (that is adjusting entries), nor only transfer expense accounts to the income statement.

Answer:

Closing means to bring an account balance to zero.