Explain why temporary accounts are closed each period. Temporary accounts are closed at the end of each accounting period for two main reasons. First, the closing process updates the capital account to include the effects of all transactions and events recorded for the period. Second, it prepares revenue, expense, and withdrawals accounts for the next reporting period by giving them zero balances. Knowledge Check 01 The purpose of the closing process is to: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply

Reset assets, liabilities and owners capital accounts

Reset revenues, expense and withdrawal accounts

Help summarize a periods revenues and expenses

Help summarize a periods assets and liabilities