In which statement are the account balances reversed to zero on a monthly basis?
A)Balance sheet
B)Cash flow statement
C)Income statement
D)All of the above

Question

Quizplus · Accepted Answer

The income statement shows the revenue and expenses for a specific period, typically a month or a year. At the end of each period, the revenue and expense accounts are closed out and the balances are reset to zero. This process is known as reversing entries. The balance sheet and cash flow statement do not typically have their balances reset to zero on a monthly basis.

In Which Statement Are the Account Balances Reversed to Zero