Closing Process The closing process occurs at the end of an accounting period after financial statements are prepared. Reasons for closing entries n Resets revenue and expense account balances to zero at the end of the period o Updates the retained earnings account to reflect net income and distributions Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 1313 Closing Process ⧫ The closing process occurs at the end of an accounting period after financial statements are prepared. ⧫ Reasons for closing entries:  Resets revenue and expense account balances to zero at the end of the period.  Updates the retained earnings account to reflect net income and distributions