202k views
4 votes
Explain what ‘closing the ledger’ means

1 Answer

1 vote

Step-by-step explanation:

The purpose of the closing entry is to reset the temporary account balances to zero on the general ledger, the record-keeping system for a company's financial data. ... All revenue and expense accounts must end with a $0 balance because they are reported in defined periods and are not carried over into the future.

User Xjasz
by
6.4k points