When closing entries are posted, the result is a zero balance in each statement of income account.

Name: When closing entries are posted, the result is a zero balance in each statement of income account.
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Closing entries are made at the end of an accounting period to transfer the balances of temporary accounts (like revenues, expenses, and dividends) to permanent accounts (like retained earnings), resulting in a zero balance in each income statement account to start the new accounting period.

When Closing Entries Are Posted, the Result Is a Zero