After closing the accounts,Retained Earnings at December 31 equals:
A)Zero.
B)$14,500.
C)$22,000.
D)$22,500.

Question

Quizplus · Accepted Answer

Retained earnings are the accumulated profits of a company that have not been distributed to shareholders as dividends. Closing the accounts transfers the net income or loss for the period to retained earnings. If the company's net income for the year was $14,500, then closing the accounts would increase the balance in retained earnings by that amount. Therefore, the correct choice is B) $14,500.

After Closing the Accounts,Retained Earnings at December 31 Equals