Which of the following best describes the difference between an adjusting entry and a closing entry for a merchandising company?

An adjusting entry is for perpetual inventory systems, whereas closing entries are for periodic inventory systems.

An adjusting entry makes the recorded inventory amount agree with the physical inventory on hand, whereas closing

entries zero out temporary accounts.

Closing entries make recorded inventory amounts agree with the physical inventory on hand, whereas an adjusting entry

zeroes out temporary accounts.

An adjusting entry sets the book value of assets to market value, whereas closing entries update the company's stock price.