After Closing Entries Are Posted, the Balance in the Retained

question 111

Multiple Choice

After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to

• A)the beginning retained earnings reported on the retained earnings statement.
• B)the amount of the retained earnings reported on the statement of financial positions.
• C)zero.
• D)the net income for the period.

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Definitions:

Bucked Head

The result of a fastener, particularly a rivet, being deformed or expanded at one end to secure it in place.

Countersunk

A method of setting screws or bolts in which their heads sit flush with or below the surface of the material, often used for a neat finish or in applications where a smooth surface is necessary.

Even Radius

A term describing a curve or surface where all points are equidistant from a central point, typically referring to the design and manufacture of components or spaces.

Pressure Protection Valve

A normally closed, pressure sensitive control valve. Some are externally adjustable. Can be used to delay the charging of a circuit or reservoir or to isolate a circuit or reservoir in the event of a pressure drop-off.