What are journal entries used to prepare temporary accounts for a new fiscal period called?

The correct choice, closing entries, refers to the specific journal entries made to transfer the balances of temporary accounts to permanent accounts at the end of an accounting period. Temporary accounts, such as revenues, expenses, and dividends, are used to gather data for a specific period and must be reset to zero before the new fiscal period begins.

By closing these accounts, the balances are moved to the retained earnings account, ensuring that the temporary accounts start fresh for the upcoming period. This practice is essential for maintaining accurate and organized financial records, allowing the new fiscal period to reflect only the transactions that occur during that time.

Other options, while related to accounting, define different processes or describe accounts in different contexts. Adjusting entries are made to update balances before financial statements are prepared, reopening entries would refer to reversing any previously closed accounts, and opening entries are not a widely recognized term generally used in accounting. Thus, closing entries is the most accurate term for the journal entries that prepare temporary accounts for a new fiscal period.