After the Closing Entries Are Posted to the Ledger,each Revenue

question 72

Multiple Choice

After the closing entries are posted to the ledger,each revenue account will have

• A) a zero balance.
• B) a debit balance.
• C) a credit balance.
• D) either a debit or a credit balance.

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Definitions:

Revenue Journal

A revenue journal is a ledger used to record a company’s sales transactions, typically detailing the sale of goods or services on credit.

Cash Revenues

Income received by a company in the form of cash from its operational activities.

Revenues on Account

Earnings from sales or services that have been completed but not yet paid for by customers.

Unearned Revenues

Money received by a company for goods or services that have not yet been provided, classified as a liability on the balance sheet until the services or goods are delivered.