after the closing entries are prepared and posted: a. all liability accounts will have a zero balance. b…

after the closing entries are prepared and posted: a. all liability accounts will have a zero balance. b. the retained earnings account will have the correct ending balance. c. all asset accounts will have a zero balance. d. the temporary accounts will have debit balances.

after the closing entries are prepared and posted: a. all liability accounts will have a zero balance. b. the retained earnings account will have the correct ending balance. c. all asset accounts will have a zero balance. d. the temporary accounts will have debit balances.

Answer

Brief Explanations:

Closing entries transfer the balances of temporary accounts (revenues, expenses, dividends) to the Retained Earnings account. This process ensures that Retained Earnings has the correct ending - balance for the period. Liability and asset accounts are permanent accounts and are not affected by closing entries. Temporary accounts are closed to zero, not left with debit balances.

Answer:

B. the Retained Earnings account will have the correct ending balance.