Closing entries will:
A) decrease the Owner's Capital.
B) increase the Cash balance.
C) either increase or decrease Owner's Capital.
D) not affect the Owner's Capital balance.

Question

Quizplus · Accepted Answer

Closing entries can either increase or decrease the Owner's Capital depending on whether the business has earned a net income (which increases Owner's Capital) or incurred a net loss (which decreases Owner's Capital) during the accounting period.

Closing Entries Will