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.
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 the purpose of closing entries.
Closing entries are made at the end of an accounting period to transfer the balances of temporary accounts (such as revenue and expense accounts) to the permanent accounts (such as retained earnings). The purpose is to reset the temporary accounts to zero so that they can start accumulating new transactions in the next accounting period.
In the case of revenue accounts specifically, these accounts represent the income earned by a business. When the closing entries are posted to the ledger, the revenue accounts will have a credit balance. This is because revenue accounts are normally credited whenever there is an increase in income.
Therefore, the correct answer is c. a credit balance.