After closing entries have been posted,________.
A) the ending balance of Moses, Capital has been properly updated.
B) only permanent accounts carry balances.
C) Moses, Withdrawals has been closed into Moses, Capital
D) All of the above statements are correct.

Question

Quizplus · Accepted Answer

Closing entries are made at the end of the accounting period to transfer temporary account balances (revenue, expenses, and withdrawals) to the permanent capital account to calculate the final profit or loss. As a result,
- The ending balance of Moses, Capital has been properly updated.
- Only permanent accounts carry balances after closing entries.
- Moses, Withdrawals has been closed into Moses, Capital.
Therefore, all of the above statements are correct.

After Closing Entries Have Been Posted,________