As a result of closing entries which of the following is true?
A)Cash is increased.
B)Retained earning is increased by the amount of income earned during the year.
C)Total assets are increased by the amount of income earned during the year.
D)Liabilities are decreased by the amount of income earned during the year.

Question

Quizplus · Accepted Answer

Closing entries are made to transfer the net income or loss from the income statement to the retained earnings account. This increases the retained earnings account and reflects the amount of income earned during the year. None of the other options are true as a result of closing entries.

As a Result of Closing Entries Which of the Following