Which of the following is correct?
A) Retained Earnings normally has a debit balance.
B) Retained Earnings normally has a credit balance.
C) Retained Earnings is closed at the end of the fiscal year.
D) Retained Earnings is a nominal account.

Question

Quizplus · Accepted Answer

Retained Earnings is a permanent account and it generally has a credit balance. This is because it represents the cumulative profits of a company that have not been distributed as dividends. The balance in Retained Earnings is carried forward from one period to the next and is not closed at the end of the fiscal year. Option A, C and D are all incorrect statements.

Which of the Following Is Correct