After the closing entries have been posted, the new balance in the retained earnings account will equal the retained earnings reported in the balance sheet: (A) TRUE
What are closing entries?
- Closing entries are journal entries made at the end of a fiscal period to convert temporary accounts to permanent accounts.
- An "income summary" account can be used to demonstrate the difference between revenue and expenses, or it can be directly closed against retained earnings, from which dividend payments will be withdrawn.
- This procedure is used to return the temporary account balances to zero for the next accounting period.
- Following the posting of the closing entries, the new balance in the retained earnings account will equal the retained earnings recorded on the balance sheet.
Therefore, the statement "after the closing entries have been posted, the new balance in the retained earnings account will equal the retained earnings reported in the balance sheet" is (A) TRUE.
Know more about closing entries here:
https://brainly.com/question/27857473
#SPJ4
