If a company has a net loss during the current accounting period,then the post-closing retained earnings will be smaller than the pre-closing retained earnings.
BT: Comprehension

Question

Quizplus · Accepted Answer

If a company has a net loss, it means that its expenses exceed its revenues, resulting in a decrease in retained earnings. Therefore, the post-closing retained earnings will be smaller than the pre-closing retained earnings.

If a Company Has a Net Loss During the Current