Which of the following describes the purpose(s) of closing entries? adjust the balances of asset and liability accounts for unrecorded activity during the period. transfer the balances of temporary accounts (revenues, expenses, and dividends) to retained earnings. reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.

Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.

Explanation:

Closing entries are made to reflect the true and fair view, and calculate the end result for the period concerned.

This basically closes the balance of expense and revenue account, as are not assets or liabilities to be reflected in balance sheet.

This basically represents all the accounts with true picture of business, and for this the temporary accounts are closed to make a zero balance in them, if yet outstanding they are transferred to permanent accounts like assets and liabilities.