The purpose of closing entries is to transfer:

12) The goal of shutting entries should move A) Accounts Receivable to Retained profits whenever a merchant account is completely compensated. B) Balances in short-term reports to a permanent account. C) stock to price of products Sold whenever product comes D) Assets and liabilities whenever operations are discontinued Learning goal: 03-06 Demonstrate the purposes and recording of shutting entries.
Proper answer———(B) Balances in short-term reports to a
adjust dividends or drawings to retained profits.

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