Which of the Following Statement Year,Valley Packaging Company's Adjusted Trial

question 3

Multiple Choice

Which of the following statement year,Valley Packaging Company's adjusted trial balance showed a zero balance in retained earnings.Which of the following is the most likely explanation for this?

• A)Valley reported zero net income in the current year.
• B)Valley's trial balance will be out of balance until closing entries are recorded.
• C)The current year was Valley's first year in business.
• D)An error must have been made in preparing Valley's trial balance.