Which of the following describes the purpose(s) of closing entries? Multiple Choice Adjust the balances of asset and liability accounts for unrecorded activity during the period. Transfer the balances of temporary accounts to common stock; reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period. Transfer the balances of temporary accounts to common stock. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period