You are studying with some classmates and are reviewing each other’s responses to the following question:
“Explain why closing entries are made. What are the two objectives that are accomplished by making closing entries?”
Your classmate responds as follows:
“Closing entries are to ensure revenue and expense accounts have a zero balance at the start of the next accounting period. The impact on your accounting records would be benefited because they will be able to tell if your company is profitable.”

Required
Identify how your classmate’s answer could be substantively improved.