What are closing entries? Give four examples of closing entries.

Explanation

A closing entry may be a journal entry that's created at the top of AN accounting amount to transfer balances from a brief account to a permanent account.
Companies use closing entries to reset the balances of temporary accounts amount accounts that show balances over one accounting amount − to zero. By doing thus, the corporate moves these balances into permanent accounts on the record. These permanent accounts show a company’s long-standing financials.

1. Close Revenue Accounts

2. Close Expense Accounts

3. Close Income Summary

4. Close Dividends