Use the following data, taken from the adjusted trial balance, for 70 and 71.
-Which of the following permanent account is changed during the closing process?
A) Share Capital-Ordinary.
B) Retained Earnings.
C) Unearned Service Revenue.
D) None of these answer choices are correct.

Question

Use the following data, taken from the adjusted trial balance, for 70 and 71. 
-Which of the following permanent account is changed during the closing process?
A) Share Capital-Ordinary. 
B) Retained Earnings. 
C) Unearned Service Revenue. 
D) None of these answer choices are correct.

Quizplus · Accepted Answer

Retained Earnings is a permanent account that is affected during the closing process. The closing entries transfer the balances of temporary accounts to Retained Earnings, which results in a change to the balance of the Retained Earnings account. Share Capital-Ordinary and Unearned Service Revenue are also permanent accounts, but they are not affected by the closing process.

Use the Following Data, Taken from the Adjusted Trial Balance