After the closing entries are posted to the ledger, each revenue account will have a zero balance: a. a zero balance, b. a debit balance, c. a credit balance, or d. either a debit or a credit balance.
a. a zero balance
explanation: income statement accounts (revenues and expenses) are temporary accounts and therefore once these accounts are closed, the balance are zero.
After the closing entries are posted to the ledger, each revenue account will have a zero balance.
To determine the answer to this question, we need to 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 a permanent account called Retained Earnings or Owner's Equity. These entries help reset the temporary accounts to zero so that they are ready for the next accounting period.
Revenue accounts, which represent income earned by a company, typically have a credit balance because revenue is recorded as a credit entry. When closing entries are made, the credit balance in the revenue accounts is transferred to Retained Earnings or Owner's Equity, resulting in a zero balance in the revenue accounts.
Therefore, the correct answer to the question is a. a zero balance. After the closing entries are posted, each revenue account will have a zero balance.