After the Closing Entries Are Prepared and Posted

question 219

Multiple Choice

After the closing entries are prepared and posted:

• A)all asset accounts will have a zero balance.
• B)the Retained Earnings account will have the correct ending balance.
• C)the temporary accounts will have debit balances.
• D)all liability accounts will have a zero balance.

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Definitions:

Offeror

The individual or party that presents a proposal or contract to another party for acceptance.

Reject

To refuse to accept, submit to, believe, or make use of.

Option Contract

A contract granting an individual the right, but not the obligation, to buy or sell an asset at a future date at an agreed-upon price.

Offeror

The party in a contract negotiation that presents the terms of the agreement to the offeree for acceptance.