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Which Types of Accounts Are Closed Out to Retained Earnings

question 61

Essay

Which types of accounts are closed out to retained earnings at the end of an accounting period?


Definitions:

Corporate Schedule

A plan or timeline adopted by a corporation outlining important dates for tasks, projects, meetings, and financial reporting.

Loss Carrybacks

A tax provision allowing companies to apply current year losses to past income years to receive tax refunds.

Carryforwards

Tax provisions that allow firms to use current year's net operating losses to reduce taxable income in future periods.

Tax Loss

A loss that can be used to offset taxable income, thus reducing the taxes owed by an individual or corporation.

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