After the Closing Entries Have Been Posted

question 55

Multiple Choice

After the closing entries have been posted:

• A) the temporary accounts are zeroed out.
• B) the Capital account includes the current net profit or loss.
• C) the post-closing trial balance is prepared.
• D) All of these answers are correct.

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Definitions:

Decreased

A reduction in the quantity, size, intensity, or extent of something.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating how much tax will be paid on an additional dollar of income.

Federal Taxes

Mandatory financial charges collected by the federal government to fund public services and projects.

State Taxes

Taxes imposed by state governments on income, sales, property, and other activities within their jurisdiction.