Closing entries are required:

A) If management has decided to cease operating the business.
B) Only if the company adheres to the accrual method of accounting.
C) If a company's bookkeeper does not choose to prepare reversing entries.
D) So that Revenue,expense,and dividends accounts must begin each period with zero balances.
E) In order to satisfy the Internal Revenue Service guidelines.

Accrual Method

An accounting technique that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Reversing Entries

An accounting method used to reverse journal entries, typically at the beginning of a new accounting period, to cancel adjustments made in the previous period.

Revenue Accounts

Accounts that track the income generated by a company from its normal business operations or other activities.