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 a) ,but I am not sure:)
To determine the correct answer, we need to understand the purpose of closing entries 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 (typically retained earnings). The purpose is to reset the temporary accounts to zero and prepare them for the next accounting period.
In the case of revenue accounts, they are temporary accounts that accumulate revenue during a specific period. To close these accounts, their balances are transferred to the retained earnings account. Depending on whether the revenue balance is a credit or debit, the closing entry for revenue accounts will have different effects.
If the revenue account has a credit balance (which is typical for most revenue accounts), the closing entry will debit the revenue account and credit the retained earnings account. This causes the revenue account to be reduced to zero and the amount of revenue is transferred to the retained earnings account.
If the revenue account has a debit balance (which is uncommon for revenue accounts), the closing entry will credit the revenue account and debit the retained earnings account. This also reduces the revenue account balance to zero and transfers the amount of revenue to retained earnings.
Considering this information, the correct answer to your question is:
d) either a debit or a credit balance.
Revenue accounts can have either a credit balance or a debit balance, depending on the specific transactions and circumstances.