The post-closing accounting equation is:
A)assets = liabilities + common stock + Retained Earnings - dividends.
B)assets = liabilities + common stock + Retained Earnings.
C)assets = liabilities + Retained Earnings + revenues - expenses.
D)assets = liabilities + Retained Earnings - dividends.

Question

Quizplus · Accepted Answer

The post-closing accounting equation simplifies to assets = liabilities + owner's equity, where owner's equity is represented by common stock and retained earnings. Dividends and specific revenue/expense accounts are closed to retained earnings and do not appear in the post-closing equation.

The Post-Closing Accounting Equation Is