Which of the following statements best describes the balance in a revenue account at the beginning of an accounting period?
A)Zero
B)Last period's ending balance
C)Higher than the previous period's beginning balance
D)Equal to the amount of retained earnings for the previous period

Question

Quizplus · Accepted Answer

The temporary accounts (that is,revenue,expense,and dividends)are closed prior to the start of the next accounting cycle.After closing,these accounts have zero balances and are ready to capture the revenue,expense,and dividend information for the next annual accounting period.

Which of the Following Statements Best Describes the Balance in a Revenue