Question: What is the closing process, and why is it necessary prior to preparing financial statements? Include temporary and permanent accounts in your discussion. Consider using

What is the closing process, and why is it necessary prior to preparing financial statements? Include temporary and permanent accounts in your discussion. Consider using an example of a real company to discuss why the closing process is a necessary step in the accounting cycle.

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The purpose of closing entries A term often used for closing entries is reconciling the companys accounts Accountants perform closing entries to return the revenue expense and drawing temporary accoun... View full answer

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