What are 'post-closing entries' used for in accounting?

Post-closing entries are used to close temporary accounts such as revenues and expenses, which is why the chosen answer is correct. In the accounting cycle, after all revenues and expenses have been recorded and financial statements prepared, these temporary accounts must be reset to zero for the next accounting period. This process ensures that no prior period amounts affect the current period's results.

By closing these accounts, the business can effectively measure performance for each new period without carryover from previous transactions. The retained earnings account is typically affected during this process, as the net income or loss from the temporary accounts is transferred to retained earnings, reflecting the business's cumulative profits or losses.

This process distinguishes the temporary accounts from permanent accounts, which carry their balances into the next accounting cycle. Other options, such as recording sales transactions, adjusting account balances for errors, or preparing financial statements, do not pertain to the specific purpose of post-closing entries, which focuses solely on resetting the temporary accounts.