After posting closing entries, the Capital account will be set back to zero.

Name: After posting closing entries, the Capital account will be set back to zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

After posting closing entries, the Capital account reflects the owner's equity at the end of the period, not zero. Closing entries are made to transfer the balances of temporary accounts (like revenues, expenses, and dividends/drawings) to the Capital account, thus affecting its balance but not resetting it to zero.

After Posting Closing Entries, the Capital Account Will Be Set