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Closing the temporary accounts at the end of each count perto d o the footgewcept Prepares the dividends account for use in the next period.

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Closing the temporary accounts at the end of each count perto d o the footgewcept Prepares the dividends account for use in the next period. Brings the revenue and expense accounts to zero balances. O Has no effect on the retained earnings account. Causes retained earnings to reflect increases from revenues and decreases from expenses and dividends. Serves to transfer the effects of these accounts to the retained earnings account on the balance sheet.

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