When closing out accounts,the amount debited to retained earnings should equal net loss on the income statement.

Name: When closing out accounts,the amount debited to retained earnings should equal net loss on the income statement.
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When closing out accounts, the amount debited to retained earnings should equal the net income or net loss on the income statement. In the case of a net loss, the amount debited to retained earnings will be equal to the amount of the net loss.

When Closing Out Accounts,the Amount Debited to Retained Earnings Should