An Important Purpose Of Closing Entries Is To (True / False & MCQ)

An important purpose of Closing Entries is to set Nominal Account or Temporary Account balances to zero in order to start or begin the next accounting period. It is the correct choice or option of MCQ.

So, an important purpose of closing entries is to set Permanent Account balances to zero is not true i.e, answer of this True & False question is "False", as permanent account balances are transferred to next year’s financial statements.