After you have closed an entity's books,what happens to the account balances?
A)all asset accounts will have zero balances
B)none of the accounts will have zero balances
C)all liability accounts will have zero balances
D)the revenue and expense accounts will have zero balances

Question

Quizplus · Accepted Answer

When closing an entity's books, the revenue and expense accounts will be closed out to a temporary account called income summary, which will then be closed out to the retained earnings account. This process will result in all revenue and expense accounts having zero balances. The asset and liability accounts will carry forward their balances to the next accounting period.

After You Have Closed an Entity's Books,what Happens to the Account