00:01
Hello students, here is a question.
00:02
The primary purpose of closing entries are, so we have some options given here, we have to choose the right answer.
00:09
The first is, prove the quality, prove the equality of debit and credit entries, credit entries in the general, general and the next is, update the balance of retained earning, update the balance of retained earning, retained earnings and prepare revenue, expenses and dividend account for the next period of transaction and next is, assure the adjusted entry balance, assure the adjusting entries balance.
01:34
So, closing entries are made at the end of an accounting period to transfer the balance of a temporary account, that is revenue, expenses and dividend account to the permanent retained earning account.
01:45
This process updates the balance of retained earning and prepares the temporary account for the next period of transaction.
01:53
So, therefore, the primary purpose of closing entries to update the balance of retained earning and prepare revenue, expenses and dividend account for the next transaction...