Question

Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as______________________.

Answer 1

Answer: Closing entries

Explanation: Closing entries also known as closing journal entries are entries made at the end of an accounting period which transfers the balances of temporary accounts to permanent accounts on the balance sheet thereby showing the firm's long-standing financials. Firms use closing entries to reset the balances of accounts that show balances over a single accounting period to zero. They are based on the account balances in an adjusted trial balance.

Answer 2

Answer: Closing entries.

Step-by-step explanation:

Closing entries are journal entries that are made at the close of an accounting period to transfer the temporary accounts balances to the permanent accounts. Temporary accounts are the revenue, gain and income accounts.

Closing entries are used by companies to reset the temporary accounts balances i.e. the accounts that reveal balances in a single accounting period to zero. After this is done, the firm moves the balances into permanent accounts. These permanent accounts showed on the balance sheet show a firm's long-standing financials.