Which of the following statements about the balance in a revenue account at the beginning of an accounting period is true?
A) The beginning balance of a revenue account will always be zero.
B) The beginning balance of a revenue account equals last period's ending balance.
C) The beginning balance of a revenue account will always be higher than the previous periods ending balance.
D) The beginning balance of a revenue account will equal to the amount of retained earnings for the previous period.

Question

Quizplus · Accepted Answer

Revenue accounts are closed at the end of each accounting period, which means their balances are transferred to the retained earnings account. Therefore, the beginning balance of a revenue account for a new period is always zero.

Which of the Following Statements About the Balance in a Revenue