What Is the Closing Process?
The closing process resets temporary accounts to zero at the end of the period so the
company can start fresh next year.
Temporary accounts =
●​ Revenues​
●​ Expenses​
●​ Dividends​
Permanent accounts (Assets, Liabilities, Common Stock, Retained Earnings) do NOT close.
●​ Assets
●​ Liabilities
●​ Equity which breaks into Capital and retained earnings