Before the closing entries are prepared,the Retained Earnings balance in the adjusted trial balance is equal to the balance of that account:
A)at the beginning of the period.
B)after adding revenues and subtracting expenses but before subtracting dividends.
C)at the end of the period.
D)at the beginning of the next period.

Question

Quizplus · Accepted Answer

The amount of Retained Earnings on the adjusted trial balance is the beginning-of-year balance.This account balance does not yet include revenues,expenses,and dividends for the current period because they have been recorded in their own separate accounts.

Before the Closing Entries Are Prepared,the Retained Earnings Balance in the Adjusted