Purpose of closing entries
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The purpose of closing entries is to transfer:
A. Accounts receivable to retained earning when an account is fully paid.
B. Balance in temporary accounts to a permanent account.
C. Inventory to cost of goods sold when merchandise is sold.
D. Assets and liabilities when operations are discontinued.
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The purpose of closing entries is to transfer:
As per investopedia "The closing entry is used to transfer data in the ...
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