Which of the following statements most accurately describes the purposes of the closing entries?

Question $2$ options:

To establish zero balances in the balance sheet accounts and to transfer net income and dividends into retained earnings

To bring the balances in the revenue and expense accounts up to date and to transfer net income and dividends into retained earnings

To establish zero balances in the income statement and dividend accounts and to transfer net income and dividends into retained earnings

To bring the balances in the asset and liability accounts up to date and to transfer net income and dividends into retained earnings

The double entry system of accounting means each transaction

Question $1$ options:

has a dual effect on the accounting equation

effects only a single account

cannot affect more than one account