At the end of 2013, Vortex Company's adjusted trial balance showed a zero balance in retained earnings. What is the most likely explanation for this?
A)Vortex Company reported zero net income in 2013.
B)2013 was Vortex Company's first year in business.
C)Vortex Company's trial balance will be out of balance until closing entries are made.
D)An error must have been made in preparing Vortex's trial balance.

Question

Quizplus · Accepted Answer

The retained earnings balance in an adjusted trial balance will be its beginning balance because temporary accounts have not yet been close

At the End of 2013, Vortex Company's Adjusted Trial Balance