Closing the revenue, expense, and dividend accounts:
A)yields the amount of net income or net loss for the period.
B)yields the change in Retained Earnings for the period.
C)yields the change in the permanent accounts for the period.
D)yields the final balance in Stockholders' Equity for the period.

Question

Quizplus · Accepted Answer

Closing the revenue, expense, and dividend accounts transfers their balances to Retained Earnings, which results in the change in Retained Earnings for the period. The closing process does not directly yield the amount of net income or net loss for the period, the final balance in Stockholders' Equity for the period, or the change in the permanent accounts for the period.

Closing the Revenue, Expense, and Dividend Accounts