After closing entries have been posted ________.
A) the ending balance of Retained Earnings has been properly updated
B) only permanent accounts carry balances
C) dividends have been closed into Retained Earnings
D) All of the statements are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. Closing entries are made at the end of an accounting period to transfer balances of temporary accounts to the permanent accounts. This includes closing the dividend account into retained earnings, updating the ending balance of Retained Earnings, and making sure that only permanent accounts carry balances going forward.

After Closing Entries Have Been Posted ________