After the closing entries are posted to the ledger, each revenue account will have a) zero balance. b)debit balance c) a credit balance d)either a debit or a credit balance.
MY ANSWER IS D BUT I AM NOT SURE :)
To determine the correct answer, let's first understand what closing entries are and how they affect revenue accounts.
Closing entries are journal entries made at the end of an accounting period to transfer the balances of temporary accounts, such as revenue and expense accounts, to the retained earnings account. The purpose of closing entries is to reset the temporary accounts to zero in order to start the next accounting period with accurate balances.
Revenue accounts are temporary accounts that track the income earned by a company within a specific accounting period. These accounts are increased with credit entries and decreased with debit entries.
With this information in mind, let's evaluate each option:
a) Zero balance: This means that the revenue accounts would have a balance of zero after the closing entries. However, since revenue accounts typically have a credit balance (as revenue is usually generated through credit transactions), it is not likely for them to have a zero balance after the closing entries.
b) Debit balance: This means that the revenue accounts would have a debit balance after the closing entries. However, revenue accounts are usually increased with credit entries, so it is unlikely for them to have a debit balance after the closing entries.
c) Credit balance: This means that the revenue accounts would have a credit balance after the closing entries. Since revenue accounts are typically increased with credit entries, it is likely for them to have a credit balance after the closing entries. Therefore, option c) is a possibility.
d) Either a debit or a credit balance: This option suggests that revenue accounts can have either a debit or a credit balance after the closing entries. While it is technically possible for an error to occur that would result in a debit balance, it is more common for revenue accounts to have a credit balance after the closing entries. So, option d) is unlikely.
Based on the analysis, option a) is not likely, option b) is unlikely, option d) is unlikely, leaving us with option c) as the most probable answer. Therefore, your answer of option d) may not be correct. Option c) - a credit balance - is a better choice.