The closing entry has two purposes. One is to establish a zero balance in each of the temporary accounts to start the accumulation in the next accounting period. What is the other purpose?

a. Transfer the balances in the temporary accounts (income statement accounts) to their related assets and liability accounts

b. Transfer the balances in the temporary accounts (income statement accounts) to Retained Earnings

c. Transfer the balances in the permanent accounts (balance sheet accounts) to their related revenue and expense accounts

d. Transfer the balances in the permanent accounts (balance sheet accounts) to Retained Earnings